HomeMy WebLinkAboutContract 46622-A12 CITY SECRETARY
RECEIVED CONTRACT NO.
SEP 12 2018 TWELFTH AMENDMENT TO CITY SECRETARY CONTRACT NO. 46622
CITY OF FORT WORTH
CITY SECRETARY
WHEREAS, on September 23, 2014, the City Council of the City of Fort Worth ("City")
authorized the expenditure of a total of $1,300,000.00 in HOME Investment Partnerships
Program ("HOME") grant funds to the Fort Worth Housing Finance Corporation ("FWHFC"),
for an affordable housing development in the Diamond Hill-Jarvis neighborhood and the sale of
21 lots to FWHFC for the construction of new single family houses to be sold to HOME-eligible
buyers (M&C C-27008);
WHEREAS,the Board of Directors of FWHFC, a Texas housing finance corporation and
public instrumentality of the City, approved contracts with City to purchase the lots and for the
HOME funds in order to act as developer of affordable housing for low and moderate income
home buyers(Resolution No. FWHFC-2014-13);
WHEREAS, on September 25, 2014, City and FWHFC made and entered into City
Secretary Contracts No. 45977, 45978, 45979, 45980, 45981, 45982, 45983 and 45984 for the
purpose of funding the construction of 8 single family houses as part of the Hardy Street Single
Family Infill Development (the "Original Contracts")and made and entered into City Secretary
Contract No. 46620,the Contract of Sale and Purchase for the 21 lots;
WHEREAS, on September 25, 2014, City and FWHFC made and entered into City
Secretary Contract No. 46622 which provided that the remaining 13 single family houses would
be developed by entering into separate Contract Amendments for each of the 13 lots containing
the specific terms for each house including HOME funds for development costs (the "13 Lot
Contract");
WHEREAS, the Original Contract provided funding to FWHFC pursuant to a grant from
the United States Department of Housing and Urban Development through the HOME Program,
Catalog of Federal Domestic No. 14.239, with which the City desires to promote activities that
expand the supply of affordable housing and the development of partnerships among City, local
governments, lenders,private industry and non-profit housing organizations;
WHEREAS, the City is required to spend a portion of its annual award of HOME funds
on projects with Community Housing Development Organizations ("CHDO") and has requested
that the HOME contracts for the development be assigned by FWHFC to Tarrant County
Housing Partnership, Inc., a CHDO, in order to assist City in meeting its CHDO spending and
commitment goals with the United States Department of Housing and Urban Development;
WHEREAS, it is the mutual desire of City and FWHFC to assign FWHFC's rights and
obligations as Developer under the Original Contract to Tarrant County Housing Partnership,
Inc. in order to meet the City's strategic goal of development and revitalization of the City's
affordable housing stock and to accomplish the objectives of the Original Contract;
OFFICIAL RECORD
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WHEREAS, Tarrant County Housing Partnership, Inc., a Texas non-profit corporation
and CHDO is willing to assume all of FWHFC's rights and obligations as Developer under the
13 Lot Contract and enter into Contract Amendments for each of the 13 lots subject to
availability of HOME funds for development costs for the 13 houses;
WHEREAS, on May 19, 2015, the City Council authorized the expenditure of an
additional $310,000.00 of HOME funds to Tarrant County Housing Partnership, now known as
Housing Channel (hereinafter "Developer") (M&C C-27295) for development costs;
WHEREAS, in order to facilitate the development and to assist the City in meeting its
CHDO commitment and spending goals and requirements, City and Developer have agreed to
amend and restate the Original Contract and incorporate their agreement as set forth below,
which agreement shall substitute for and supersede the terms of the Original Contract. City and
Developer may be referred to individually as a "Party" and collectively as "the Parties".
WHEREAS, in order to facilitate the development and to assist the City in meeting its
CHDO commitment and spending goals and requirements, City and Developer have agreed to
enter into a Contract Amendment to the 13 Lot Contract to provide funds to construct the house
at 3601 Eagle Nest Street and to incorporate their agreement as set forth below, which agreement
shall substitute for and supersede the terms of the 13 Lot Contract as those terms apply to 3625
Eagle Nest Street.
NOW THEREFORE, in consideration of the mutual agreements in the 13 Lot Contract as
amended and restated herein, and the further consideration of the mutual covenants, obligations
and responsibilities contained herein, including all Exhibits and Attachments, and subject to the
terms and conditions hereinafter stated, City and Developer agree that the following is
substituted for and supersedes the 13 Lot Contract for the purpose of developing a single family
house at 3625 Eagle Nest Street:
"This contract ("Contract") is made and entered into by and between the City of Fort
Worth (hereafter "City") and Tarrant County Housing Partnership, Inc. (hereafter "Developer"),
a Texas non-profit corporation. City and Developer may be referred to individually as a "Party"
and jointly as "the Parties".
The Parties state as follows:
WHEREAS, City has received a grant from the United States Department of Housing and
Urban Development ("HUD") through the HOME Investment Partnerships Program, Catalog of
Federal Domestic Assistance No. 14.239, with which City desires to promote activities that
expand the supply of affordable housing and the development of partnerships among City, local
governments, lenders, private industry, and non-profit housing organizations;
WHEREAS, the primary purpose of the HOME program pursuant to the HOME
Investment Partnerships Act at Title 11 of the Cranston Gonzales National Affordable Housing
Act of 1990, as amended, 42 U.S.C. 12701 et seq. and the HOME Investment Partnerships
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Program Final Rule, as amended, 24 CFR Part 92 et seq. (the "HOME Regulations" or
"Regulations") is to benefit low-income citizens by providing them with affordable housing;
WHEREAS. a portion of City's HOME, funds are reserved for the use of certain housing
development entities that qualify under the HOME Regulations as a Community Housing
Development Organization or CHDO;
WHEREAS, Developer is a Texas non-profit corporation managed by a volunteer Board
of Directors working to increase the number of quality, accessible, and affordable ownership
housing units available to low and moderate income individuals and families and has fulfilled the
requirements of the HOME Program to be a CHDO;
WHEREAS, City has certified that Developer is a Community Housing Development
Organization;
WHEREAS, Developer requested HOME CHDO funds for an eligible project under the
HOME Regulations whereby Developer will construct a single family house located at 3625
Eagle Nest, Fort Worth, TX 76106 for sale to a low- to moderate-income homebuyer;
WHEREAS, City citizens and the City Council have determined that the development of
quality, accessible, affordable housing is needed for moderate-, low-, and very low-income City
citizens;
WHEREAS, consistent with the goals of the CHDO program, which was designed to
increase a CHDO's capacity to develop affordable housing, Developer shall continue to seek
alternative funding sources;
WHEREAS, Developer was able to identify and secure additional funding sources to
assist in the financing of this project and has entered into an agreement with Inwood National
Bank to fund a portion of the construction costs;
NOW, THEREFORE, in consideration of the mutual covenants and obligations and
responsibilities contained herein, including all Exhibits and Attachments, and subject to the
terms and conditions hereinafter stated, the Parties understand and agree as follows:
1. INCORPORATION OF RECITALS.
City and Developer hereby agree that the recitals set forth above are true and correct and
form the basis upon which the Parties have entered into this Contract.
2. DEFINITIONS.
In addition to terms defined in the body of this Contract, the following terms shall have
the definitions ascribed to them as follows:
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Affordable House means a house purchased by a HOME Eligible Buyer for which the monthly
payment of principal, interest, property taxes, and hazard insurance is not more than 30% or less
than 20% of the homebuyer's monthly gross income. In the case of new house construction, the
percentage of the homebuyer's monthly gross income shall not exceed 32%.
Act means the HOME Investment Partnerships Act at Title II of the Cranston Gonzales National
Affordable Housing Act of 1990, as amended, 42 U.S.C. 12701 et seq.
Affordability Period means the period of time that a house purchased or constructed with
HOME funds must remain affordable and subject to recapture provisions in 24 CFR Part 92.254
of the HOME Regulations.
The Affordability Period for the house constructed under this Contract is 5 years unless
otherwise required as set forth in Section 7.3.2. The Affordability Period begins on the
date the project status is changed to "complete" in IDIS.
Area Median Income or AMI means the median family income for the Fort Worth-Arlington
metropolitan statistical area as determined annually by HUD.
Business Diversity Enterprise Ordinance or BDE means City's Business Diversity Ordinance,
Ordinance No. 20020-12-2011.
Complete Documentation means the following documentation as applicable:
• Attachments I and II, with supporting documentation as follows:
o Proof of expense: copies of timesheets, invoices, leases, service contracts
or other documentation showing that payment is due by Developer.
o Proof of payment: cancelled checks, bank statements, or wire transfers
necessary to demonstrate that amounts due by Developer were actually
paid by Developer.
• Other documentation: (i) final lien releases signed by the general contractor or
subcontractors, if applicable; (ii) copies of all City permits and City-issued "pass"
inspections for such work; (iii) documentation showing compliance with BDE or
DBE bidding process for procurement or Contract activities, if applicable; (iv)
proof of contractor, subcontractor or vendor eligibility as described in Section 6.6;
and (v) any other documents or records reasonably necessary to verify costs spent
for the house.
• Complete Documentation shall meet the standards described in the attached
Exhibit "J"- Standards for Complete Documentation.
Community Housing Development Organization or CHDO means, as defined in 24 CFR 92.2
as amended from time to time, a private non-profit organization,that:
(1) Is organized under State or local laws;
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(2) Has no part of its net earnings inuring to the benefit of any member, founder,
contributor, or individual;
(3) Is neither controlled by, nor under the direction of, individuals or entities seeking to
derive profit or gain from the organization. A CHDO may be sponsored or created by
a for-profit entity, but:
(i) The for-profit entity may not be an entity whose primary purpose is the
development or management of housing, such as a builder, developer, or real
estate management firm;
(ii) The for-profit entity may not have the right to appoint more than one-third of
the membership of the organization's governing body, and board members
appointed by the for-profit entity may not appoint the remaining two-thirds of
the board members; and
(iii) The CHDO must be free to contract for goods and services from vendors of
its own choosing; and
(iv) The officers and employees of the for-profit entity may not be officers or
employees of the CHDO.
(4) Has a tax exemption ruling from the Internal Revenue Service under section 501(c)
(3) or (4) of the Internal Revenue Code of 1986 (26 CFR 1.501(c)(3)-1), is classified
as a subordinate of a central organization non-profit under section 905 of the Internal
Revenue Code of 1986, or if the private nonprofit organization is an wholly owned
entity that is disregarded as an entity separate from its owner for tax purposes (e.g., a
single member limited liability company that is wholly owned by an organization that
qualifies as tax-exempt), the owner organization has a tax exemption ruling from the
Internal Revenue Service under section 501(c)(3) or (4) of the Internal Revenue Code
of 1986 and meets the definition of a CHDO;
(5) Is not a governmental entity (including the participating jurisdiction, other
jurisdiction, Indian tribe, public housing authority, Indian housing authority, housing
finance agency, or redevelopment authority) and is not controlled by a governmental
entity. An organization that is created by a governmental entity may qualify as a
CHDO; however, the governmental entity may not have the right to appoint more
than one-third of the membership of the organization's governing body and no more
than one-third of the board members may be public officials or employees of the
governmental entity. Board members appointed by a governmental entity may not
appoint the remaining two-thirds of the board members. The officers or employees of
a governmental entity may not be officers or employees of a CHDO;
(6) Has standards of financial accountability that conform to 2 CFR Part 200 "Standards
for Financial Management Systems";
(7) Has among its purposes the provision of decent housing that is affordable to low-
income and moderate-income persons, as evidenced in its charter, articles of
incorporation, resolutions, or by laws;
(8) Maintains accountability to low-income community residents by:
(i) Maintaining at least one-third of its governing board's membership for
residents of low-income neighborhoods, other low-income community
residents, or elected representative of low-income neighborhood
organizations. For urban areas, "community" may be a neighborhood or
neighborhoods, city, county or metropolitan area; for rural areas, it may be a
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neighborhood or neighborhoods, town, village, county, or multi-county area
(but not the entire State); and
(ii) Providing a formal process for low-income-program beneficiaries to advise
the organization in its decisions regarding the design, siting, development, and
management of affordable housing;
(9) Has a demonstrated capacity for carrying out activities assisted with HOME funds. A
designated organization undertaking development activities as a developer or sponsor
must satisfy this requirement by having paid employees with housing development
experience who will work on projects assisted with HOME funds. For its first year of
funding as a CHDO, an organization may satisfy this requirement through a contract
with a consultant who has housing development experience to train appropriate key
staff of the organization. An organization that will own housing must demonstrate
capacity to act as owner of a project and meet the requirements of§ 92.300(a)(2). A
nonprofit organization does not meet the test of demonstrated capacity based on any
person who is a volunteer or whose services are donated by another organization; and
(10) Has a history of serving the community within which housing to be assisted with
HOME funds is to be located. In general, an organization must be able to show one
year of serving the community before HOME funds are reserved for the organization.
However, a newly created organization formed by local churches, service
organizations or neighborhood organizations may meet this requirement by
demonstrating that its parent organization has at least a year of serving the
community.
Completion means the substantial completion of the house as evidenced by a Neighborhood
Services Department Minimal Acceptable Standard Inspection Report, HUD Compliance
Inspection Report, and any other applicable final inspection approval from City.
Completion Deadline means March 31,2019.
DBE means disadvantaged business enterprise in accordance with 49 CFR Part 26.
Deed of Trust means any deed of trust from Developer in favor of City covering the Property
and securing the indebtedness evidenced therein and Developer's performance of the
requirements of this Contract and the of the HOME Regulations, as the same may be extended,
amended, restated, supplemented or otherwise modified. The form of the Deed of Trust is
attached as part of Exhibit "E"—Loan Documents.
Developer Fee means 10% of the total HOME eligible development costs actually spent for the
Required Improvements to be paid to Developer.
Director means the Director of City's Neighborhood Services Department.
Effective Date means September 11, 2018.
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HAP or HAP Program means City's Homebuyer Assistance Program which provides
subordinate forgivable deferred payment loans with HOME funds for closing cost and/or down
payment assistance to eligible homebuyers under the HAP Guidelines.
HAP Guidelines means any rules, regulations, guidelines and requirements by City or HUD that
a homebuyer must meet in order to (i) qualify for HAP down payment and/or closing cost
assistance, and (ii) fulfill the homebuyer's obligations under the HOME Program during the
Affordability Period.
HAP Loan means the subordinate purchase money loan from City under its HAP Program to a
HOME Eligible Buyer in the minimum amount of$1,000.00
HAP Loan Documents means the HOME Written Agreement between City and the HOME
Eligible Buyer, the promissory note in favor of City in the amount of the HAP assistance and the
deed of trust securing the HAP Loan, as well as any other instruments evidencing, securing or
guaranteeing the HAP Loan, as the same may be extended, amended, restated, supplemented or
otherwise modified.
HOME means the HOME Investment Partnerships Program.
HOME Eligible Buyer means a homebuyer, whether one or more, (i) whose annual income
adjusted for family size does not exceed 80% of AMI, and (ii) who meets HAP Guidelines and
qualifies for and receives a minimum of $1,000.00 of down payment and/or closing cost
assistance in the form of a HAP loan.
HOME Funds means the HOME Program grant funds supplied by City to Developer under the
terms of this Contract not to exceed $90,222.00, which includes the costs set forth in Exhibit
"B"—Budget and the Developer Fee.
HOME Regulations means the HOME Investment Partnerships Program Final Rule found at 24
CFR Part 92 et seq.
HOME Requirements means that the house constructed with the HOME Funds must be sold by
Developer to a HOME Eligible Buyer who has received a minimum HAP Loan of$1,000.00 and
who will occupy the house as his or her Principal Residence throughout the Affordability Period
in accordance with the HAP Loan Documents and HAP Guidelines.
HUD means the United States Department of Housing and Urban Development.
IDIS means HUD's Integrated Disbursement Information System.
Loan means the HOME Funds provided to Developer by City in the form of a forgivable
deferred payment loan under the terms of this Contract as more particularly described in the
Loan Documents.
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Loan Documents means security instruments including without limitation, City's Promissory
Note and Deed of Trust, or any other similar security instruments evidencing, securing or
guaranteeing City's interest in the Required Improvements constructed by Developer in
accordance with the terms of this Contract as the same may from time to time be extended,
amended, restated, supplemented or otherwise modified.
Neighborhood Services Department means City's Neighborhood Services Department created
on February 17, 2015 in Ordinance No. 21651-02-2015.
Plans means the elevations and site plans related to the Required Improvements prepared by
Developer's architect which have been delivered to and then reviewed and approved by City on
or before the Effective Date, and any and all amendments thereto approved by City. The
elevations for the house are attached as Exhibit "A-1"—Final Elevations.
Principal Residence means the house purchased from Developer by a HOME Eligible Buyer
who will occupy it continuously throughout the Affordability Period in accordance with the HAP
Guidelines and the HAP Loan Documents.
Promissory Note means any note in the amount of the HOME Funds executed by Developer
payable to the order of City, as the same may be extended, amended, restated, supplemented or
otherwise modified. The form of the Promissory Note is attached as Exhibit "E" — Loan
Documents.
Property means the lot or lots on which the Required Improvements shall be constructed as
more particularly described in and encumbered by the Deed of Trust.
Required Improvements or the house means all the improvements for a single family house to
be constructed on the Property, together with all fixtures, improvements and appurtenances now
or later to be located on the Property and/or in such improvements. The house will be commonly
known as 3625 Eagle Nest Street, Fort Worth, TX 76106. The Required Improvements are
part of an infill housing development project known as the Hardy Street Single Family Infill
Development in which Developer will construct and sell single family houses in the Diamond
Hill-Jarvis neighborhood to HOME Eligible Buyers (the "project").
Reimbursement Request means all reports and other documentation described in Section 10.
Sales Proceeds means the funds resulting from the sale of the house to a HOME Eligible Buyer
and consisting of the sales price of the house less (i) any construction loan repayment (other than
the HOME Funds) and (ii) any common and customary seller's closing costs approved by City
shown on the Closing Disclosure, or as otherwise defined in the HOME Regulations.
3. TERM AND EXTENSION
3.1 Term.
The term of this Contract begins on the Effective Date and terminates in 2 years unless
earlier terminated as provided in this Contract.
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3.1.1 Extension of Contract.
This Contract may be extended for 1 year upon Developer submitting a request for an
extension in writing at least 60 calendar days before the end of the Contract term. The request
for extension shall include the reasons for the extension and Developer's anticipated budget,
construction schedule and goals for the extended term. It is specifically understood and agreed
that it is in City's sole discretion whether to approve or deny Developer's request for an
additional term. Any such extension shall be in the form of an amendment to this Contract
executed by the Parties.
3.2 Term of Loan.
The term of the Loan commences on the date of the Promissory Note and terminates in 3
years so long as the terms and conditions of this Contract and the Loan Documents have been
met.
4. DUTIES AND RESPONSIBILITIES OF CITY.
4.1 Provide HOME Funds.
City shall provide up to $90,222.00 of HOME Funds in the form of the Loan for eligible
expenses for the development of the house under the terms and conditions described herein.
4.2 City Will Monitor.
City will monitor the activities and performance of Developer and any of its contractors,
subcontractors or vendors annually as required by 24 CFR Part 92.504.
5. DEVELOPER OBLIGATIONS.
5.1 Construction of Required Improvements.
Developer shall complete the construction of the Required Improvements as described in
Exhibit "A" — Project Summary and Scope of Work in accordance with the Plans, the
schedule in Exhibit "C" — Construction and Reimbursement Schedule, and the terms and
conditions of this Contract.
5.1.1 Written Cost Estimates, Constructions Contracts and Construction
Documents.
Developer shall submit to City the construction contracts and construction documents to
show the work to be undertaken for the Required Improvements in sufficient detail that City can
perform all required inspections in accordance with 24 CFR Part 92.251 (a)(2)(iv). City shall
review written cost estimates for the construction of the Required Improvements to determine
that such costs are reasonable. In the event City, in its sole discretion, determines that such costs
are unreasonable, Developer shall revise said costs estimates to City's satisfaction.
5.2 Use of HOME Funds.
5.2.1 Sale of Required Improvements to a HOME Eli$tible Buyer.
Developer shall sell the house to HOME Eligible Buyers under the terms and conditions
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of this Contract.
5.2.2 Costs in Compliance with HOME Regulations and Contract.
Developer shall be reimbursed for eligible costs for the Required Improvements with
HOME Funds only if City determines in its sole discretion that:
5.2.2.1 Costs are eligible expenditures in accordance with the HOME
Regulations.
5.2.2.2 Costs are in compliance with this Contract and are reasonable and
consistent with industry norms.
5.2.2.3 Complete Documentation, as applicable, is submitted by Developer.
5.2.3 Budget.
Developer agrees that the HOME Funds will be paid on a reimbursement basis in
accordance with Exhibit "B" — Budget and Exhibit "C" — Construction and Reimbursement
Schedule. Developer may increase or decrease line-item amounts in the Budget with the
Director's prior written approval, which approval shall be in the Director's sole discretion. Any
such increase or decrease in line items in the Budget shall comply with Section 5.2.2, Exhibit
"A" — Project Summary and Scope of Work, and shall not increase the total amount of HOME
Funds.
5.2.4 Change in Budget.
5.2.4.1 Developer shall continue to make commercially reasonable efforts to
identify and secure alternative funding sources for ongoing and future
construction projects funded with HOME funds and shall report such
efforts to City on a quarterly basis, if applicable. Notwithstanding the
forgoing, Developer will notify City promptly of any additional funds
it receives for construction of the Required Improvements, and City
reserves the right to amend this Contract in such instances to ensure
compliance with HUD regulations governing cost allocation.
5.2.4.2 Developer agrees to utilize the HOME Funds to supplement rather
than supplant funds otherwise available for the house.
5.2.4.3 Notwithstanding any provision in this Contract to the contrary,
Developer's efforts to identify and secure alternative funding sources
shall not delay the performance of any obligations of either Developer
or City under this Contract.
5.3 _Payment of HOME Funds to Developer.
HOME Funds will be disbursed to Developer upon City's approval of Developer's
written and signed Reimbursement Requests, including submission of Complete Documentation
to City in compliance with Section 10. It is expressly agreed by the Parties that any HOME
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Funds not reimbursed to Developer shall remain with City.
5.4 Identify Expenses Paid with HOME Funds.
Developer will keep accounts and records in such a manner that City may readily identify
and account for expenses reimbursed with HOME funds. These records shall be made available
to City for audit purposes and shall be retained as required hereunder.
5.5 Acknowledtement of City Payment of HOME Funds.
Within 90 calendar days after the sale of the house, Developer shall sign an
acknowledgement that City has paid all HOME Funds due under this Contract, or shall deliver a
document executed by an officer of Developer identifying all or any portion of the HOME Funds
that City has not paid to Developer. Once City has met all of its obligations for payment of
HOME Funds hereunder, an officer of Developer shall sign an acknowledgement of same.
5.6 Security for City's Interest.
To secure City's interest in the Required Improvements and the performance of
Developer's obligations hereunder, Developer shall execute the Loan Documents and record the
Deed of Trust at the earlier of(i) the acquisition of the Property, or (ii) before any construction
materials are delivered to the Property or any work is commenced on the Required
Improvements. No HOME Funds will be paid or reimbursed until the Loan Documents are
executed and the Deed of Trust is recorded. City will release the Deed of Trust upon the closing
of the sale of the house to a HOME Eligible Buyer.
5.6.1 Loan Terms and Conditions.
Developer will be required to:
5.6.1.1 Execute the Promissory Note and Deed of Trust along with any other
Loan Documents required by City.
5.6.1.2 Provide City with a Mortgagee's or Lender's policy of title insurance
in the amount of the Loan.
5.6.1.3 Pay all costs associated with closing the Loan.
5.6.1.4 Provide City with a copy of an estimated settlement statement from the
title company at least 1 business day before closing of the Loan.
5.6.1.5 Ensure City's lien is in first lien position unless otherwise approved in
writing by City. In addition, City must approve in writing any secured
financing for the Required Improvements that is to be subordinate to
the Loan.
5.6.1.6 The term of the Loan shall be as specified in Section 3.3.
5.6.1.7 No interest shall accrue on the Loan provided that Developer complies
with the terms and conditions of the Promissory Note.
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5.6.1.8 The Loan is a forgivable deferred payment loan. The Loan will be
forgiven provided that (i) the house is sold to a HOME Eligible Buyer
in accordance with the HOME Requirements, (ii) City receives the
Sales Proceeds, and (iii) Developer is not otherwise in default of the
Loan terms or Contract provisions.
5.6.1.9 Early repayment of the Loan shall not relieve Developer of its
obligations under this Contract or the HOME Regulations including
but not limited to the HOME Requirements. The Deed of Trust shall
secure both repayment of the HOME Funds, if required, and
performance by Developer of its obligations under this Contract.
5.6.1.10 Refinancing of the Loan or any approved subordinate financing by
Developer shall require City's prior written approval for the purpose of
ensuring compliance with the HOME Requirements, which approval
shall not be unreasonably conditioned or withheld.
5.6.1.11 Failure by Developer to comply with this Section 5.6.1 will be an
event of default under this Contract and the Loan Documents.
5.7 Maintain HOME Requirements.
Developer shall ensure that the house is sold to a HOME Eligible Buyer as required by
this Contract and the HOME Regulations. Developer must notify City in writing if Developer
has not entered into a binding sales contract for the house with a HOME Eligible Buyer within 6
months of Completion. Such notice must be given within 14 calendar days of the 6 month
deadline and Developer shall have 7 calendar days from the date of the notice to submit a
detailed plan describing how the house will be sold to a HOME Eligible Buyer within 9 months
of Completion. If Developer has not sold the house within 9 months of Completion, then the
default provisions of Section 11.3 of this Contract shall apply.
5.8 HOME Requirements Survive Transfer.
Any sale or transfer of the Property by Developer during the Contract term, other than a
sale of the house to a HOME Eligible Buyer or a transfer due to condemnation or to obtain utility
services, may at City's sole discretion require the repayment of the HOME Funds. At a
minimum, any such sale or transfer will require the new owner or transferee to assume in writing
the HOME Requirements as well as all of Developer's other obligations under this Contract.
Failure of the new owner or transferee to promptly assume all of Developer's obligations under
this Contract and the Loan Documents will result in immediate termination of this Contract and
any HOME Funds already paid to Developer must be repaid to City within 30 days of such
termination. In addition, City may pursue any of its remedies under the Loan Documents if the
new owner or transferee fails to assume all of Developer's obligations hereunder.
5.9 CHDO Certification.
5.9.1. CHDO Requirements Met.
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By the execution of this Contract, Developer represents that it meets the requirements for
designation as a CHDO set forth in 24 CFR Part 92.2.
5.9.2 Status Reports.
Developer has a continuing duty to provide City with all documentation or information in
regard to any change in its status as a CHDO or as a 501(c)(3) tax exempt entity within 10
business days of said change. Developer shall provide an annual board roster and proof of its
continued status as a CHDO to City by January 30th of each year. CHDO shall replace any
board member who resigns or is otherwise no longer able to serve within 3 months of the
vacancy. The failure of Developer to maintain its status as a CHDO and a 501(c)(3) tax exempt
entity shall result in termination of this Contract and return of all HOME Funds to City if CHDO
is unable to cure any violations of this Section within 30 calendar days of written notice from
City.
6.1 Construction Schedule.
Developer will construct the Required Improvements in accordance with the schedule set
forth in the attached Exhibit "C" — Construction and Reimbursement Schedule. Developer
shall not begin construction until City sends a Notice to Proceed. Developer's failure to meet
the Construction Schedule or the Completion Deadline shall be an event of default. Developer
may not change the Construction Schedule without the Director's prior written approval, which
approval shall be in the Director's sole discretion.
6.1.1 Construction Inspections.
City shall conduct progress and final inspections of the construction of the house to
ensure that work is done in accordance with applicable codes, Developer's construction contract
and the construction documents in accordance with 24 CFR Part 92.251 (a)(2)(v). The
construction of the house must pass a Neighborhood Services Department Minimal Acceptable
Standard Inspection report, a HUD Compliance Inspection Report and any other applicable
HUD-required inspections during the construction period, along with any applicable final
inspection approval from City at the completion of the construction of the house.
6.2 Applicable Laws, Building Codes and Ordinances.
The Plans and construction for the house shall (i) conform to all applicable Federal, State,
City and other local laws, ordinances, codes, rules and regulations, including the HOME
Regulations; (ii) meet all City building codes; (iii) meet the Energy Conservation requirements
as required by the State of Texas in Chapter 11 of the International Residential Code; (iv) if new
construction, must conform to the Model Energy Code published by the Council of American
Building Officials.
6.3 Property Standards During Construction.
If applicable, Developer shall comply with the following during the construction of the
house: (i) the Uniform Physical Condition Standards ("UPCS") contained in 24 CFR 5.703 and
(ii) City property standards.
6.4 Lead-Based Paint Requirements.
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If applicable, Developer will comply with all Federal lead-based paint requirements
including lead screening in housing built prior to 1978 in accordance with 24 CFR Part 92.355
and 24 CFR Part 35, subparts A, B, 1, K, M, and R, and the Lead: Renovation, Repair and
Painting Program Final Rule, 40 CFR Part 745 in the construction and/or rehabilitation of the
Required Improvements.
6.5 Approval of Plans by City Not Release of Responsibility.
Approval of the Plans by City shall not constitute or be deemed (i) to be a release of the
responsibility or liability of Developer or any of its architects, contractors or subcontractors, or
their respective officers, agents, employees and lower tier subcontractors, for the accuracy or the
competency of the Plans, including, but not limited to, any related investigations, surveys,
designs, working drawings and specifications or other documents; or (ii) an assumption of any
responsibility or liability by City for any negligent act, error or omission in the conduct or
preparation of any tests, investigations, surveys, designs, working drawings and specifications or
other documents by Developer or any of its architects, contractors or subcontractors, and their
respective officers, agents, employees and lower tier subcontractors.
6.6 Contractor, Vendor and Subcontractor Requirements.
Developer will use commercially reasonable efforts to ensure that all contractors or
vendors utilized by Developer, or subcontractors utilized by Developer's general contractor, are
appropriately licensed and such licenses are maintained throughout the construction of the house.
For purposes of this Contract, the term "vendors" shall include real estate brokers, other real
estate marketing professionals, title companies, as well as surveyors and appraisers if Developer
pays for the survey or the appraisal. The term "vendors" does not include suppliers and
materialmen. Developer shall ensure that all subcontractors or vendors utilized by Developer or
subcontractors utilized by Developer's general contractor in the construction of the house, or
vendors utilized by Developer in the marketing or sale of the house are not debarred or
suspended from performing the contractor's, subcontractor's or vendor's work by City, the State
of Texas or the Federal government. Developer acknowledges that 24 CFR Part 200 forbids
Developer from hiring or continuing to employ any contractor, subcontractor or vendor
that is listed on the Federal Excluded Parties List System for Award Management,
www.sam.gov ("SAM"). Developer must confirm by search of SAM that all contractors,
subcontractors or vendors are not listed by SAM as being debarred, both prior to hiring and
prior to submitting a Reimbursement Request which includes invoices from any such
contractor, subcontractor, or vendor. Failure to submit such proofs of search shall be an
event of default. In the event that City determines that any contractor, subcontractor or vendor
has been debarred, suspended, or is not properly licensed, Developer or Developer's general
contractor shall immediately cause such contractor, subcontractor or vendor to stop work on the
house and Developer shall not be reimbursed for any work performed by such contractor,
subcontractor or vendor. However, this Section shall not be construed to be an assumption of
any responsibility or liability by City for the determination of the legitimacy, quality, ability, or
good standing of any contractor, subcontractor or vendor. Developer acknowledges that the
provisions of this Section pertaining to the SAM shall survive the termination of this
Contract and be applicable for so long as Developer owns the house which was constructed
in whole or in part with the HOME Funds.
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7. SALE OF REQUIRED IMPROVEMENTS TO HOME ELIGIBLE BUYER.
7.1 Income Eligibility.
Homebuyer eligibility will be determined using the definition of annual income in 24
CFR 5.609.
7.2 Sales Price of Required Improvements; Market Analysis.
The sales price of each house shall not exceed 95% of the median purchase price for the
area as set by HUD in accordance with 24 CFR 92.254. The sales price of the house shall be
established by a market analysis obtained by Developer and furnished by Developer to City
within 30 calendar days of Developer applying for building permits from City. The sales price
established by the market analysis shall only be valid for 9 months from the date of the market
analysis. If Developer has not sold the house to a HOME Eligible Buyer within the 9 month
period during which the market analysis is valid, a new market analysis must be performed to
establish the sales price of the house. City in its sole discretion may extend this 9 month period
for up to 60 days if Developer has entered into a binding sales contract for the house before the
end of the 9 month period and needs the extension to close the sale of the house.
7.3 HOME Eligible Buyer.
All purchasers of the house must be HOME Eligible Buyers. Developer must verify that
a prospective purchaser is a HOME Eligible Buyer and must timely supply City with all
information necessary to prove eligibility for the HAP Loan. Any attempted sale of a house to
a purchaser who is not a HOME Eligible Buyer shall be an event of default and shall result
in automatic termination of this Contract. HOME Eligible Buyers must complete a
homeownership training and counseling program prior to closing their purchase of the house
from Developer. This requirement shall be evidenced by a completion certificate from a HUD-
certified housing counseling agency provided to City. Failure to provide a copy of such
certificate shall be an event of default.
7.3.1 HAP Participation.
All prospective purchasers of a house must apply and qualify for a HAP Loan of at least
$1,000.00 of down payment and/or closing cost assistance at least 30 calendar days prior to
closing of the sale of the house. Eligibility for a HAP Loan shall be determined by City in its
sole discretion using the HAP Guidelines. City shall enter into a HOME Written Agreement
with the prospective purchaser as part of the HAP Loan. If requested by City, Developer shall
use its best efforts to timely provide City with all documents necessary for City to process the
HAP Loan application, including verification of homebuyer income eligibility.
7.3.2 Other HOME Assistance.
HOME Regulations require that the amount of HOME investment that is subject to
recapture is based on the amount of HOME assistance that enabled the homebuyer to buy the
dwelling unit. The sales price of the house will be determined by a market analysis performed
by Developer in accordance with Section 7.2. In the event that the price of the house is reduced
below the sales price set by the market analysis or a lender's appraisal, whichever is lower, and
the amount of the reduction in the sales price plus the amount of the HAP Loan exceeds
$15,000.00, then the Affordability Period will be 10 years. If the amount of the reduction in the
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sales price plus the amount of the HAP Loan exceeds $40,000.00, then the Affordability Period
will be 15 years.
7.3.2.1 If required, the additional Affordability Period will be more
particularly described in the HOME Written Agreement and evidenced
by a note to City in the amount of the other HOME Assistance
described in this subsection and secured by a deed of trust in favor of
City. The loan will be a subordinate forgivable deferred payment loan
for the term of the additional required Affordability Period.
7.3.2.2 Developer shall notify City, and if necessary, the prospective
homebuyer and the prospective homebuyer's first lien mortgage
company within 5 business days of determining that the sales price of
the house will require an additional Affordability Period.
7.4 Sales Contract.
Developer shall provide City with a copy of a proposed sales contract for the house for
City approval prior to execution by Developer. City will review and approve the sales contract
or request changes within 1 business day. The sales contract must contain the following
provision:
7.4.1 "The Property was constructed with Federal funds which require that the
Buyer occupy it as Buyer's principal residence for up to 15 years. To assure performance
of this Federal requirement, Buyer must apply for and obtain a subordinate loan of at least
$1,000.00 from the City of Fort Worth's Homebuyer Assistance Program for closing cost
and/or down payment assistance. City's loan will be secured with a Deed of Trust which
will remain on the Property for a minimum of 5 years. If Buyer occupies the Property as
Buyer's principal residence for the full affordability period based on the amount of direct
assistance calculated in accordance with Federal requirements, City will forgive its loan. If
Buyer does not meet the Federal requirements for City's loan, Seller shall terminate the
contract by giving notice to Buyer and the Earnest Money will be refunded to Buyer."
7.5 Developer to Provide Settlement Statement.
Developer shall provide City the estimated Closing Disclosure at least 5 business days
prior to the closing of the sale of the house to a HOME Eligible Buyer. The Closing Disclosure
shall show any homebuyer subsidies, the HAP Loan, any loan for the other HOME Assistance
and the Sales Proceeds to be returned to City. Developer shall not close the sale of a house
without receiving City's written approval of the final Closing Disclosure. Written approval from
City to the title company closing the sale of the house shall be deemed written approval of the
final Closing Disclosure for purposes of this Section.
7.6 Deadline for Sale of Required Improvements.
The house must be sold to a HOME Eligible Buyer within 9 months of Completion.
Developer shall submit monthly status reports to City regarding the sale of each house beginning
with the first month after Completion and continuing until the house is sold.
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7.7 Marketin!
7.7.1. Affirmative Marketin1j.
Developer must adopt affirmative marketing procedures and requirements for the
Required Improvements consistent with City policies and procedures. The procedures and
requirements must include methods for informing the public, owners and potential homebuyers
about fair housing laws and policies so as to ensure that all individuals, without regard for sex,
age, race, color, creed, nationality, national origin, religion, handicap status, disability, familial
status, sexual orientation, gender identity, gender expression or transgender, are given an equal
opportunity to participate in the project. Affirmative marketing procedures and requirements
must include the following as required by 24 CFR Part 92.351:
7.7.1.1 Methods for informing the public, owners, and potential purchasers
about Federal fair housing laws and City's affirmative marketing
policy
7.7.1.2 Requirements and practices Developer must adhere to in order to carry
out City's affirmative marketing procedures and requirements
7.7.1.3 Procedures to be used by Developer to inform and solicit potential
purchasers of the houses constructed as part of the project in the
housing market area who are not likely to seek to purchase a house
without special outreach;
7.7.1.4 Records that will be kept describing actions taken by Developer to
affirmatively market the program and houses constructed as part of the
project and records to assess the results of these actions; and
7.7.1.5 A description of how Developer will annually assess the success of
affirmative marketing actions and what corrective actions will be taken
where affirmative marketing requirements are not met.
7.7.2. City Approval.
All Developer marketing procedures related to the house and the project, including but
not limited to the affirmative marketing described in Section 7.7.1, are subject to approval by
City. Developer shall submit all marketing plans for City approval no later than 30 calendar
days after the Effective Date.
7.7.3 Effective MarketinIZ.
Developer will be solely responsible for the effective marketing responsibilities necessary
to achieve the HOME Requirements. Documentation supporting these efforts shall be submitted
to City upon request and shall include, but not be limited to, brochures, sign-in sheets for open
houses, listings, and advertisements for the house and the project.
7.8 Developer Fee.
Developer shall be paid the Developer Fee as more particularly described in Exhibit "C"
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— Construction and Reimbursement Schedule upon the closing of the sale of the house to a
HOME Eligible Buyer so long as City has received copies of all of the inspections set forth in
Section 6.1.1. City shall pay Developer Fee at City's sole option (i) outside of closing upon
receipt from Developer of an invoice including Complete Documentation showing the total
amount of HOME Funds actually spent to develop the Required Improvements, or (ii) at closing.
City, in its sole discretion, may elect to pay a portion of the Developer Fee before closing. If
City so elects, such early partial payment shall be more particularly described in Exhibit "B" —
Budget and Exhibit "C"—Construction and Reimbursement Schedule.
7.9 Sales Proceeds.
All Sales Proceeds shall be returned to City.
8. ADDITIONAL HOME REQUIREMENTS.
Developer agrees to comply with all requirements of the HOME Program as stated in the
HOME Regulations, including, but not limited to the following:
8.1 Environmental Review.
HOME Funds will not be paid and costs may not be incurred until City has conducted an
environmental review and completed an Environmental Review Record as required by 24 CFR
Part 58. The environmental review may result in a decision to proceed with, modify, or cancel
the project. Further, Developer will not undertake or commit any funds to physical or choice
limiting actions, including if applicable, property acquisition, demolition, movement,
rehabilitation, conversion, repair or construction prior to the environmental clearance. Any
violation of this Section will (i) cause this Contract to terminate immediately, and (ii)
require Developer to repay to City any HOME Funds received and forfeit any future
payments of HOME Funds.
8.1.2 Mitigation.
Developer must take the mitigation actions outlined in Exhibit "A-2" —Environmental
Mitigation Action. Failure to complete the required mitigation action is an event of default
under this Contract.
8.2 Contract Not Constituting Commitment of Funds.
Notwithstanding any provision of this Contract, the Parties agree and acknowledge that
this Contract does not constitute a commitment of HOME Funds, and that such commitment or
approval may occur only upon satisfactory completion of environmental review and receipt by
City of an authorization to use grant funds from HUD under 24 CFR Part 58.
8.3. Monitoring.
8.3.1 Developer understands and agrees that it will be subject to monitoring by City for
compliance with the HOME Regulations, the terms of this Contract and the Loan Documents
until the project is closed in IDIS and for 5 years thereafter. Developer will provide reports and
access to project files as requested by City during the term of the Contract and for 5 years after
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the project is closed in IDIS. In order to assist City with its monitoring, Developer shall comply
with all the reporting requirements set out in this Contract.
8.3.2 Representatives of City, HUD, HUD Office of Inspector General, and the United
States Comptroller General shall have access during regular business hours, upon 48 hours' prior
notice, to Developer's offices and records that are related to the use of the HOME Funds, and to
Developer's officers, agents, and records that are related to the use of the HOME Funds, and to
Developer's officers agents, employees, contractors, subcontractors and vendors for the purpose
of such monitoring.
8.3.3 In addition to other provisions of this Contract regarding frequency of monitoring,
City reserves the right to perform desk reviews or on-site monitoring of Developer's compliance
with the terms and conditions of this Contract and the Loan. City shall provide Developer with a
written report of the monitor's findings after each monitoring visit. If the monitoring report
notes deficiencies in Developer's performance, the report shall include requirements for the
timely correction of said deficiencies by Developer. Failure by Developer to take the action
specified in the monitoring report may be cause for suspension or termination of this Contract as
provided herein or City may take all actions allowed in the Loan Documents.
8.3.4 This Section 8.3 shall be applicable for the duration of the Contract term and
for 5 years thereafter and shall survive the earlier termination or expiration of this
Contract.
8.4 Compliance with the Uniform Relocation Act.
If applicable, Developer shall comply with the relocation requirements of 24 CFR Part
92.353 and all other applicable Federal and State laws and City ordinances and requirements
pertaining to relocation.
8.5 Compliance with Davis-Bacon Act.
If applicable, Developer and its general contractor and all lower tier subcontractors will
comply with the Davis-Bacon Act as described in Section 14.14 and Exhibit "H"—Federal
Labor Standards Provisions - Davis-Bacon Requirements-.
8.6 Developer Procurement Standards.
Developer shall ensure that procurement of materials and services is done in a cost
effective manner. Developer shall comply with all applicable federal, state and local laws,
regulations, and ordinances for making procurements under this Contract. Developer shall
establish written procurement procedures to ensure that materials and services are obtained in a
cost effective manner
8.7 Cost Principles/Cost Reasonableness.
The eligibility of costs incurred for performance rendered shall be determined in
accordance 2 CFR Part 200.402 through 2 CFR Part 200.405, as applicable, regarding cost
reasonableness and allocability.
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8.8 Financial Manalzement Standards.
Developer agrees to adhere to the accounting principles and procedures required in 2
CFR Part 200, as applicable, utilize adequate internal controls, and maintain necessary
supporting and back-up documentation for all costs incurred in accordance with 2 CFR Part
200.302 and Part 200.303.
8.9 Uniform Administrative Requirements.
Developer will comply with the Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards in 2 CFR Part 200, as applicable, or any reasonably
equivalent procedures and requirements that City may require.
8.10 Compliance with FFATA and Whistleblower Protections.
Developer shall provide City with all necessary information for City to comply with the
requirements of 2 CFR 300(b), including provisions of the Federal Funding Accountability and
Transparency Act ("FFATA") governing requirements on executive compensation and
provisions governing whistleblower protections contained in 10 U.S.C. 2409, 41 U.S.C. 4712, 10
U.S.C. 2324, 41 U.S.C. 4304 and 41 U.S.C. 4310.
8.10.1 Developer shall provide City its DUNS number prior to the payment of any
Reimbursement Requests.
8.11 Internal Controls.
In compliance with the requirements of 2 CFR 200.303, Developer shall:
8.11.1 Establish and maintain effective internal control over the HOME Funds that
provides reasonable assurance that Developer is managing the HOME Funds in compliance with
federal statutes, regulations, and the terms and conditions of this Contract. These internal
controls shall be in compliance with guidance in "Standards for Internal Control in the Federal
Government" issued by the Comptroller General of the United States or the "Internal Control
Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway
Commission ("COSO");
8.11.2 Comply with federal statutes, regulations, and the terms and conditions of this
Contract;
8.11.3 Evaluate and monitor Developer's compliance with statutes, regulations and the
terms and conditions of this Contract;
8.11.4 Take prompt action when instances of noncompliance are identified including
noncompliance identified in audit findings; and
8.11.5 Take reasonable measures to safeguard protected personally identifiable
information and other information that HUD or City designates as sensitive or Developer
considers sensitive consistent with applicable federal, state, local and tribal laws regarding
privacy and obligations of confidentiality.
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8.12 Copyright and Patent Rights.
No reports, maps, or other documents produced in whole or in part under this Contract
shall be the subject of an application for copyright by or on behalf of Developer. HUD and City
shall possess all rights to invention or discovery, as well as rights in data which may arise as a
result of Developer's performance under this Contract.
8.13 Terms Applicable to Contractors, Subcontractors and Vendors.
Developer understands and agrees that all terms of this Contract, whether regulatory or
otherwise, shall apply to any and all contractors, subcontractors and vendors of Developer which
are in any way paid with HOME Funds or who perform any work in connection with the
construction or sale of the house. Developer shall cause all applicable provisions of this Contract
to be included in and made a part of any contract or subcontract executed in the performance of
its obligations hereunder, including its obligations regarding the HOME Requirements and the
HOME Regulations. Developer shall monitor the services and work performed by its
contractors, subcontractors and vendors on a regular basis for compliance with the HOME
Requirements, the HOME Regulations and Contract provisions. Developer is responsible to cure
all violations of the HOME Regulations committed by its contractors, subcontractors or vendors
pertaining to this Contract. City maintains the right to insist on Developer's full compliance with
the terms of this Contract and the HOME Regulations and Developer is responsible for such
compliance regardless of whether actions to fulfill the requirements of this Contract or the
HOME Regulations are taken by Developer or by Developer's contractors, subcontractors or
vendors. Developer acknowledges that the provisions of this Section shall survive the
earlier termination or expiration of this Contract and be applicable for 5 years after the
termination of this Contract.
8.14 Payment and Performance Bonds.
Subject to the requirements of 2 CFR Part 200, Developer shall furnish City with
payment and performance bonds in a form acceptable to City in the amount of the construction
cost for the project but not less than $182,000.00, which is the total amount of the Loan. At
City's discretion, other forms of assurance may be acceptable so long as they meet the
requirements of the HOME Regulations.
9. RECORD KEEPING, REPORTING AND DOCUMENTATION
REQUIREMENTS, RIGHT TO AUDIT.
9.1 Record Keeping.
Developer shall maintain a record keeping system as part of its performance of its
obligation under the terms of this Contract and shall promptly provide City with copies of any
document City deems necessary for the effective fulfillment of City's monitoring and evaluation
responsibilities. Specifically, Developer will keep or cause to be kept an accurate record of all
actions taken and all funds spent, with supporting and back-up documentation. Developer will
maintain all records and documentation related to this Contract for 5 years after the Contract
terminates. If any claim, litigation, or audit is initiated before the expiration of the 5 year period,
the relevant records and documentation must be retained until all such claims, litigation or audits
have been resolved.
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9.1.2 Access to Records.
Representatives of City and HUD and any duly authorized officials of the Federal
government will have full access to, and the right to examine, audit, excerpt and/or transcribe
any of Developer's records pertaining to all matters covered by this Contract for 5 years after the
Contract terminates. Such access shall be during regular business hours and upon at least 7
calendar days prior notice.
9.2 Reports.
Developer will submit to City all reports and documentation described in this Contract in
such form as City may prescribe. Developer may also be required to submit a final performance
and/or final financial report if required by City at the termination of this Contract and/or the end
of the Loan in such form and within such times as City may prescribe. Failure to submit any
report or documentation described in this Contract to City shall be an event of default of this
Contract and City may exercise all of it remedies for default under this Contract and Loan
Documents.
9.2.1 Additional Information.
Developer shall provide City with additional information as may be required by State or
Federal agencies to substantiate HOME Program activities and/or expenditure eligibility.
9.3 Change in Reporting Requirements and Forms.
City retains the right to change reporting requirements and forms at its discretion. City
will notify Developer in writing at least 30 calendar days prior to the effective date of such
change, and the Parties shall execute an amendment to this Contract reflecting such change if
necessary.
9.4 City Reserves the Right to Audit.
City reserves the right to perform an audit of Developer's project operations and finances
at any time during the term of this Contract or for 5 years after the Contract terminates, if City
determines that such audit is necessary for City's compliance with the HOME Regulations or
other City policies, and Developer agrees to allow access to all pertinent materials as described
herein. If such audit reveals a questioned practice or expenditure, such questions must be
resolved within 15 business days after notice to Developer of such questioned practice or
expenditure. If questions are not resolved within this period, City reserves the right to withhold
further funding under this Contract and/or other contracts with Developer. IF AS A RESULT
OF ANY AUDIT IT IS DETERMINED THAT DEVELOPER HAS FALSIFIED ANY
DOCUMENTATION OR MISUSED, MISAPPLIED OR MISAPPROPRIATED HOME
FUNDS OR SPENT HOME FUNDS ON ANY INELIGIBLE ACTIVITIES, DEVELOPER
AGREES TO REIMBURSE CITY THE AMOUNT OF SUCH MONIES PLUS THE
AMOUNT OF ANY SANCTIONS, PENALTY OR OTHER CHARGE LEVIED
AGAINST CITY BY HUD BECAUSE OF SUCH ACTIONS.
10. REIMBURSEMENT REQUIREMENTS.
Developer shall provide City with Complete Documentation and the following reports as
shown in Exhibit "F"—Reimbursement Forms with each Reimbursement Request:
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10.1 Attachment I—Invoice.
This report shall contain the amount requested for reimbursement in the submitted
request, and the cumulative reimbursement requested to date (inclusive of the current request).
By submitting Attachment I, Developer is certifying that the costs are valid, eligible, and
consistent with the terms and conditions of this Contract, and the data contained in the report is
true and correct.
10.2 Attachment II—Expenditure Worksheet.
This report shall itemize each expense requested for reimbursement by Developer. In
order for this report to be complete the following must be submitted:
10.2.1 Invoices for each expense with an explanation as to how the expense pertains
to the house or project, if necessary; and
10.2.2 Proof that each expense was paid by Developer, which can be satisfied by
cancelled checks, wire transfer documentation, paid receipts or other appropriate banking
documentation.
10.3 Deadline for Submitting Reimbursement Requests.
All Reimbursement Requests along with Complete Documentation shall be submitted by
Developer to City within 60 calendar days from each of the deadlines as shown in Exhibit "C"—
Construction and Reimbursement Schedule.
10.3.1 CITY SHALL HAVE NO OBLIGATION TO PAY ANY
REIMBURSEMENT REQUEST THAT IS NOT RECEIVED WITHIN 60 CALENDAR
DAYS OF THE DEADLINES SHOWN IN EXHIBIT "C" — CONSTRUCTION AND
REIMBURSEMENT SCHEDULE. In addition, Developer's failure to timely submit
Reimbursement Requests and Complete Documentation along with any required reports
shall be an event of default.
10.3.2 CITY SHALL HAVE NO OBLIGATION TO MAKE PAYMENT ON
ANY REIMBURSEMENT REQUUEST THAT IS NOT RECEIVED WITHIN 30
CALENDAR DAYS OF THE COMPLETION DEADLINE.
10.3.3 Final Payment.
Developer shall not be reimbursed for Final Payment until it submits Exhibit "G" —
HOME Project Compliance Report to City regarding the HOME Eligible Buyer.
10.4 Withholding Payment.
10.4.1 CITY SHALL WITHHOLD PAYMENTS REQUESTED UNDER THIS
CONTRACT IF COMPLETE DOCUMENTATION IS NOT RECEIVED.
10.4.2 FINAL REIMBURSEMENT SHALL NOT BE MADE UNTIL ALL
LIENS ARE RELEASED TO CITY'S SATISFACTION AND THE CLOSING OF THE
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SALE OF THE HOUSE TO A HOME ELIGIBLE BUYER. Developer shall furnish City
with a copy of an Affidavit of Completion sworn to by Developer's general contractor that
has been filed by Developer in the Tarrant County Real Property Records in compliance
with the Texas Property Code, Section 53.106 as proof that all subcontractors, laborers and
materialmen have been paid in full for all labor and materials provided to the general
contractor for the house and project.
10.5 Timing of Payment.
Provided that Developer submits Complete Documentation to the Director with respect to
the Required Improvements in conformance with this Contract, City will reimburse Developer
for eligible expenses within 15 calendar days.
11. DEFAULT AND TERMINATION.
11.1 Failure to Begin or Complete the Required Improvements
11.1.1 The Property shall be acquired by Developer within 12 months of the
Effective Date. If Developer fails to begin construction of the house within 12 months of the
acquisition of the Property or, if Developer already owns the Property, the Effective Date, this
Contract shall automatically terminate without further notice or opportunity to cure, and with no
penalty or liability to City.
11.1.2 If City determines that the Required Improvements were not completed by the
Completion Deadline or have failed to pass any of the inspections described in Section 6.1.1,
City shall have the right to terminate this Contract effective immediately upon written notice to
Developer of such intent with no penalty or liability to City after giving Developer 30 calendar
days to cure. City shall also be entitled to demand repayment of the HOME Funds already
disbursed to Developer and enforce any of the provisions of Loan Documents for default.
11.2 Failure to Submit Complete Documentation During Construction.
11.2.1 If Developer fails to submit Complete Documentation during construction of
the Required Improvements in accordance with Exhibit "C" — Construction and
Reimbursement Schedule, or if any report or documentation submitted as part of Complete
Documentation is not in compliance with this Contract or the HOME Regulations as determined
by City in its sole discretion, City will notify Developer in writing and Developer will have 30
calendar days from the date of City's written notice to submit or resubmit any such report or
documentation. If Developer fails to submit or resubmit any such report or documentation
within such time, City shall have the right to withhold payments. If such failure continues for an
additional 30 calendar days (a total of calendar 60 days), City shall have the right to terminate
this Contract effective immediately upon written notice of such intent to Developer with no
penalty or liability to City. Notwithstanding anything to the contrary herein, City will not be
required to pay any HOME Funds to Developer during the period that any such report or
documentation is missing or otherwise not in compliance with this Contract or the HOME
Regulations.
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11.2.2 If any of Developer's Reimbursement Requests are incomplete or otherwise
not in compliance with this Contract or the HOME Regulations as determined by City in its sole
discretion, City will notify Developer in writing of such default and Developer will have 15
calendar days from the date of the written notice to resubmit any such Reimbursement Request
to cure the default. If Developer fails to cure the default within such time, Developer shall
forfeit any payments otherwise due under such Reimbursement Request. If such failure to
resubmit such Reimbursement Request continues for an additional 15 calendar days (a total of 30
calendar days), City shall have the right to terminate this Contract effective immediately upon
written notice of such intent with no penalty or liability to City. Notwithstanding anything to the
contrary herein, City will not be required to pay any HOME Funds to Developer during the
period that any such Reimbursement Request is not in compliance with this Contract or the
HOME Regulations.
11.2.3 In the event of more than 2 instances of default, cured or uncured, under
Sections 11.2.1 or 11.2.2, City reserves the right at its sole option to terminate this Contract
effective immediately upon written notice of such intent to Developer with no penalty or
liability to City.
11.2.4 Notwithstanding anything to the contrary herein, City will not be required to
pay any HOME Funds to Developer during the period that any Reimbursement Request, report
or other documentation is missing, past due or is not in compliance with this Contract or the
HOME Regulations, or during any period during which Developer is in default of this Contract.
11.2.5 In the event of termination under this Section 11.2, all HOME Funds awarded
but unpaid to Developer pursuant to this Contract shall be immediately forfeited and Developer
shall have no further right to such funds. Any HOME Funds already paid to Developer must be
repaid to City within 30 calendar days of termination under this Section. Failure to repay such
HOME Funds will result in City exercising all legal remedies available to City under this
Contract and the Loan Documents.
11.3 Failure to Sell Required Improvements.
Developer must notify City in writing if Developer fails to sell the house to HOME
Eligible Buyers within 9 months of Completion as described in Section 5.7. Developer must
notify City in writing no later than 8 months after Completion which of the following options
Developer plans to elect if a house will not be sold to a HOME Eligible Buyer within 9 months
of Completion:
11.3.1 Convert the house to a rental unit as described in 24 CFR Part 92.252.
Developer will be responsible for maintenance and management of the rental house. If
Developer selects this option, City will enter into a separate agreement with Developer setting
forth the HOME requirements applicable for HOME rental units; or
11.3.2 Repay City all HOME Funds provided to Developer under this Contract for
the unsold house within 30 calendar days of notifying City of this option. If Developer selects
this option,this Contract may be terminated at City's sole election.
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11.4 Failure to Maintain or Submit Required Reports and Documentation.
If Developer fails to maintain all records and documentation as required in Section 9, or
fails to submit any report or documentation required by this Contract after the Required
Improvements are completed, or if the submitted report or documentation is not in compliance
with this Contract or the HOME Regulations as determined by City in its sole discretion, City
will notify Developer in writing and Developer will have 15 calendar days from the date of the
written notice to obtain or recreate the missing records or documentation, or submit or resubmit
any such report or documentation to City. If Developer fails to maintain the required reports or
documentation, or submit or resubmit any such report or documentation within such time, City
shall have the right to terminate this Contract effective immediately upon written notice of such
intent with no penalty or liability to City. In the event of termination under this Section 11.4,
any HOME Funds paid to Developer must be repaid to City within 30 calendar days of
termination. Failure to repay such HOME Funds will result in City exercising all legal
remedies available to City under this Contract and the Loan Documents.
11.5 In General.
11.5.1 Subject to Sections 11.1, 11.2, 11.3 and 11.4, and unless specifically provided
otherwise in this Contract, Developer shall be in default under this Contract if Developer
breaches any term or condition of this Contract. In the event that such a breach remains uncured
after 30 calendar days following written notice by City (or such other notice period as may be
specified herein), or if Developer has diligently and continuously attempted to cure following
receipt of such written notice but reasonably required more than 30 calendar days to cure, as
determined by both Parties mutually and in good faith, City shall have the right to elect, in City's
sole discretion, to (i) extend Developer's time to cure, (ii) terminate this Contract effective
immediately upon written notice of such intent to Developer, or (iii) pursue any other legal
remedies available to City under this Contract or the Loan Documents.
11.5.2 City's remedies may include:
11.5.2.1 Direct Developer to prepare and follow a schedule of actions for
carrying out the affected activities, consisting of schedules,
timetables and milestones necessary to implement the affected
activities.
11.5.2.2 Direct Developer to establish and follow a management plan that
assigns responsibilities for carrying out the remedial activities.
11.5.2.3 Cancel or revise activities likely to be affected by the performance
deficiency, before expending HOME Funds for the activities.
11.5.2.4 Reprogram HOME Funds that have not yet been expended from
affected activities to other eligible activities or withhold HOME
Funds.
11.5.2.5 Direct Developer to reimburse City in any amount of HOME
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Funds not used in accordance with the HOME Regulations.
11.5.2.6 Suspend reimbursement of HOME Funds for affected activities.
11.5.2.7 Any other appropriate action including but not limited to any
remedial action legally available such as declaratory judgment,
specific performance, damages, temporary or permanent
injunctions, termination of this Contract or any other contracts with
Developer, and any other available remedies.
11.5.3 In the event of termination under this Section 11.5, all HOME Funds awarded
but unpaid to Developer pursuant to this Contract shall be immediately rescinded and Developer
shall have no further right to such funds and any HOME Funds already paid to Developer must
be repaid to City within 30 calendar days of termination. Failure to repay such HOME Funds
will result in City exercising all legal remedies available to City under this Contract or the
Loan Documents.
11.5.4 If this Contract terminates prior to the sale of the house to a HOME Eligible
Buyer or to conversion to a lease purchase or rental unit, Developer waives all right to the
Developer Fee.
11.6 No Funds Disbursed while in Breach.
Developer understands and agrees that no HOME Funds will be paid to Developer until
all defaults are cured to the satisfaction of City.
11.7 No Compensation After Date of Termination.
Developer will not receive any HOME Funds for work undertaken after the date of
termination.
11.8 Rights of City Not Affected.
Termination shall not affect or terminate any of the existing rights of City against
Developer, or which may thereafter accrue because of such default, and this provision shall be in
addition to any and all other rights and remedies available to City under the law and Loan
Documents including, but not limited to, compelling Developer to complete the Required
Improvements in accordance with the terms of the Contract. Such termination does not
terminate any applicable provisions of this Contract that have been expressly noted as surviving
the term or termination of this Contract. No delay or omission by City in exercising any right or
remedy available to it under this Contract shall impair any such right or remedy or constitute a
waiver or acquiescence in any CHDO default.
11.9 Waiver of Breach Not Waiver of Subsequent Breach.
The waiver of a default or breach of any term, covenant, or condition of this Contract or
the Loan Documents shall not operate as a waiver of any subsequent breach of the same or any
other term, covenant or condition hereof or thereof.
11.10 Civil, Criminal and Administrative Penalties.
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Failure to perform all Contract terms may result in civil, criminal or administrative
penalties, including,but not limited to those set out in this Contract.
11.11 Termination for Cause.
11.11.1 City may terminate this Contract in the event of Developer's default, inability,
or failure to perform subject to notice, grace and cure periods. In the event City terminates this
Contract for cause, all HOME Funds awarded but unpaid to Developer pursuant to this Contract
shall be immediately rescinded and Developer shall have no further right to such funds and any
HOME Funds already paid to Developer must be repaid to City within 30 calendar days of
termination. Failure to repay such HOME Funds will result in City exercising all legal remedies
available to City under this Contract or the Loan Documents. DEVELOPER
ACKNOWLEDGES AND AGREES THAT IF CITY TERMINATES THIS CONTRACT
FOR CAUSE, NEITHER DEVELOPER NOR ANY AFFILIATES OF DEVELOPER
WILL BE CONSIDERED FOR ANY OTHER CITY CONTRACT FOR HOME FUNDS
FOR A MINIMUM OF 5 YEARS FROM THE DATE OF TERMINATION.
11.11.2 This Contract shall be terminated immediately in the event Developer
loses its CHDO certification or status after the cure period stated in Section 5.9.2.
11.11.3 Developer may terminate this Contract if City does not provide the HOME
Funds substantially in accordance with this Contract.
11.12 Termination for Convenience.
In terminating in accordance with 2 CFR 200, Appendix II, this Contract may be
terminated in whole or in part only as follows:
11.12.1 By City with the consent of Developer in which case the Parties shall agree
upon the termination conditions, including the effective date and in the case of partial
termination, the portion to be terminated, or
11.12.2 By Developer upon written notification to City setting forth the reasons for
such termination, the effective date, and in the case of partial termination, the portion to be
terminated. In the case of a partial termination, City may terminate the Contract in its entirety if
City determines in its sole discretion that the remaining portion of the Contract to be performed
or HOME Funds to be spent will not accomplish the purposes for which this Contract was made.
11.13 Dissolution of Developer Terminates Contract.
This Contract shall terminate in the event Developer is dissolved or ceases to exist. In
the event of termination under this Section, all HOME Funds are subject to repayment and/or
City may exercise all of its remedies under this Contract and the Loan Documents.
11.14 Reversion of Assets.
In the event this Contract is terminated with or without cause, all assets acquired by
Developer with the HOME Funds including but not limited to plans, drawings, surveys,
renderings, construction documents and any other real or personal property owned by Developer
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that was improved with the HOME Funds shall belong to City and shall automatically transfer to
City or to such assignees as City may designate.
11.15 Notice of Termination under Subordination A14reement.
City shall not terminate this Contract without first giving notice and opportunity to cure
as required in the Subordination Agreement.
11.16 Notice to Investor of Default.
City shall furnish Investor with notice of any default under this Contract at the address
shown below.
12. REPAYMENT OF HOME FUNDS.
All HOME Funds are subject to repayment in the event the house or the project does not
meet the requirements of this Contract or of the HOME Regulations. If Developer takes any
action that results in City being required to repay all or any portion of the HOME Funds to
HUD, Developer agrees it will reimburse City for such repayment.
13. MATERIAL OWNERSHIP CHANGE.
If ownership of Developer materially changes after the date of this Contract, City may
but is not obligated to, terminate this Contract. City has 30 calendar days to make such
determination after receipt of written notice from Developer and failure to make such
determination will constitute a waiver. In the event of termination by City under this Section 13,
all HOME Funds awarded but not yet paid to Developer pursuant to this Contract shall be
immediately rescinded and Developer shall have no further right to such funds. Any HOME
Funds already paid to Developer must be repaid to City within 30 calendar days of termination
under this Section.
14. GENERAL PROVISIONS
14.1 Developer an Independent Contractor.
Developer shall operate hereunder as an independent contractor and not as an officer,
agent, servant or employee of City. Developer shall have exclusive control of, and the exclusive
right to control, the details of the work and services performed hereunder, and all persons
performing same, and shall be solely responsible for the acts and omissions of its officers,
members, agents, servants, employees, contractors, subcontractors, vendors, tenants, licensees or
invitees.
14.2 Doctrine of Respondeat Superior.
The doctrine of respondeat superior shall not apply as between City and Developer, its
officers, members, agents, servants, employees, contractors, subcontractors, vendors, tenants,
licensees or invitees, and nothing herein shall be construed as creating a partnership or joint
enterprise between City and Developer. City does not have the legal right to control the details
of the tasks performed hereunder by Developer, its officers, members, agents, employees,
contractors, subcontractors, vendors, tenants, licensees or invitees.
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14.3 Developer Property.
City shall under no circumstances be responsible for any property belonging to
Developer, its officers, members, agents, employees, contractors, subcontractors, vendors,
tenants, licensees or invitees that may be lost, stolen or destroyed or in any way damaged and
DEVELOPER HEREBY INDEMNIFIES AND HOLDS HARMLESS CITY AND ITS
OFFICERS, AGENTS, AND EMPLOYEES FROM ANY AND ALL CLAIMS OR SUITS
PERTAINING TO OR CONNECTED WITH SUCH PROPERTY.
14.4 Religious Organization.
No portion of the HOME Funds shall be used in support of any sectarian or religious
activity. In addition, there must be no religious or membership criteria for buyers of a HOME-
funded property.
14.5 Venue.
Venue shall lie in Tarrant County, Texas for any action, whether real or asserted, at law
or in equity, arising out of the execution, performance, attempted performance or
non-performance of this Contract.
14.6 Governing Law.
This Contract shall be governed by and construed in accordance with the laws of the
State of Texas. If any action, whether real or asserted, at law or in equity, arises out of the
execution, performance or non-performance of this Contract or on the basis of any provision
herein, for any issue not governed by Federal law, the choice of law shall be the laws of the State
of Texas.
14.7 Severability.
The provisions of this Contract are severable, and if for any reason a clause, sentence,
paragraph or other part of this Contract shall be determined to be invalid by a court or Federal or
state agency, board or commission having jurisdiction over the subject matter thereof, such
invalidity shall not affect other provisions which can be given effect without the invalid
provision.
14.8 Written Agreement Entire Agreement.
This written instrument and the Exhibits, Attachments and Addendums attached hereto,
which are incorporated by reference and made a part of this Contract for all purposes, constitute
the entire agreement by the Parties concerning the work and services to be performed under this
Contract. Any prior or contemporaneous oral or written agreement which purports to vary the
terms of this Contract shall be void. Any amendments to the terms of this Contract must be in
writing and executed by the Parties.
14.9 Paragraph Headings for Reference Only, No Legal Significance; Number
and Gender.
The paragraph headings contained herein are for convenience in reference to this
Contract and are not intended to define or to limit the scope of any provision of this Contract.
When context requires, singular nouns and pronouns include the plural and the masculine gender
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shall be deemed to include the feminine or neuter and the neuter gender to include the masculine
and feminine. The words "include" and "including"whenever used herein shall be deemed to be
followed by the words "without limitation".
14.10 Compliance With All Applicable Laws and Regulations.
Developer agrees to comply fully with all applicable laws and regulations that are
currently in effect or that are hereafter amended during the performance of this Contract. Those
laws include, but are not limited to:
➢ HOME Investment Partnerships Act as set out above
➢ Title VI of the Civil Rights Act of 1964 (42 U.S.C. Sections 2000d et seq.) including
provisions requiring recipients of Federal assistance to ensure meaningful access by
person of limited English proficiency
➢ The Fair Housing Act, Title VIII of the Civil Rights Act of 1968 (42 U.S.C. Sections
3601 et seq.)
➢ Executive Orders 11063, 11246 as amended by 11375 and 12086 and as
supplemented by Department of Labor regulations 41 CFR, Part 60
➢ The Age Discrimination in Employment of 1967
➢ The Age Discrimination Act of 1975 (42 U.S.C. Sections 6101 et seq.)
➢ The Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970 (42 U.S.C. Sections 4601 et seq. and 49 CFR Part 24) ("URA")
➢ Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. Sections 794 et seq.) and 24
CFR Part 8 where applicable
➢ National Environmental Policy Act of 1969, as amended, 42 U.S.C. sections 4321 et
seq. ("NEPA") and the related authorities listed in 24 CFR Part 58.
➢ The Clean Air Act, as amended, (42 U.S.C. Sections 1251 et seq.) and the Clean
Water Act of 1977, as amended (33 U.S.C. Sections 1251 et seq.), related Executive
Order 11738 and Environmental Protection Agency Regulations at 40 CFR Part 15.
In no event shall any amount of the assistance provided under this Contract be
utilized with respect to a facility that has given rise to a conviction under the Clean
Air Act or the Clean Water Act.
➢ Immigration Reform and Control Act of 1986 (8 U.S.C. Sections 1101 et seq.)
specifically including the provisions requiring employer verifications of legal status
of its employees
➢ The Americans with Disabilities Act of 1990 (42 U.S.C. Sections 12101 et seq.), the
Architectural Barriers Act of 1968 as amended (42 U.S.C. sections 4151 et seq.) and
the Uniform Federal Accessibility Standards, 24 CFR Part 40, Appendix A
➢ Regulations at 24 CFR Part 87 related to lobbying, including the requirement that
certifications and disclosures be obtained from all covered persons
➢ Drug Free Workplace Act of 1988 (41 U.S.C. Sections 701 et seq.) and 24 CFR Part
23, Subpart F
➢ Executive Order 12549 and 24 CFR Part 5.105(c) pertaining to restrictions on
participation by ineligible, debarred or suspended persons or entities
➢ Regulations at 24 CFR Part 882.708(c) pertaining to site and neighborhood standards
for new construction projects
➢ Regulations at 24 CFR Part 983.6 for Site and Neighborhood Standards Review
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➢ Section 6002 of the Solid Waste Disposal Act, as amended by the Resource
Conservation and Recovery Act
➢ Guidelines of the Environmental Protection Agency at 40 CFR Part 247
➢ For contracts and subgrants for construction or repair, Copeland "Anti-Kickback" Act
(18 U.S.C. 874) as supplemented in 29 CFR Part 5
➢ For construction contracts in excess of $2,000, and in excess of $2,500 for other
contracts which involve the employment of mechanics or laborers, Sections 103 and
107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327A 300) as
supplemented by 29 CFR Part 5
➢ Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4801 et seq.), as amended by
the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851 et
seq.) and implementing regulations at 24 CFR Part 35, subparts A, B, M, and R
➢ Regulations at 24 CFR Part 92, Home Investment Partnerships Program Final Rule
➢ Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards, 2 CFR Part 200 et seq.
➢ Federal Funding Accountability and Transparency Act of 2006, (Pub.L. 109-282, as
amended by Section 6205(a) of Pub.L. 110-252 and Section 3 of Pub.L. 113-101)
➢ Federal Whistleblower Regulations, 10 U.S.C. 2409, 41 U.S.C. 4712, 10 U.S.C.
2324, 41 U.S.C. 4304 and 41 U.S.C. 4310.
14.11 HUD-Assisted Projects and Employment and other Economic
Opportunities; Section 3 Requirements.
14.11.1 Requirement that Law Be Quoted in Covered Contracts. — Certain
Requirements Pertaining to Section 3 of the Housing and Urban
Development Act of 1968 as Amended (12 U.S.C. Sections 1701 et seg.)
and its Related Regulations at 24 CFR Part 135
If the construction of the Required Improvements will cause the creation of new
employment, training, or contracting opportunities on a contractor or subcontractor level
resulting from the expenditure of the HOME Funds, Developer shall comply with the following
and will ensure that its contractors also comply. If the work performed under this Contract is on
a project assisted under a program providing direct Federal financial assistance from HUD,
Section 3 of 24 CFR Part 135 ("Section 3") requires that the following clause, shown in italics,
be inserted in all covered contracts ("Section 3 Clause"):
Section to be quoted in covered contracts begins:
"A. The work to be performed under this contract is subject to the
requirements of Section 3 of Housing and Urban Development Act of 1968, as
amended, 12 U.S.C. section 1701 u (Section 3). The purpose of Section 3 is to
ensure that employment and other economic opportunities generated by HUD
assisted or HUD-assisted projects covered by Section 3, shall to the greatest
extent feasible, be directed to low- and very-low income persons, particularly
persons who are recipients of HUD assistance for housing.
B. The parties to this contract agree to comply with HUD's regulations in 24
CFR Part 135, which implement Section 3. As evidenced by their execution of
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this contract, the parties to this contract certify that they are under no contractual
or other impediment that would prevent them from complying with the Part 135
regulations.
C. The contractor agrees to send to each labor organization or
representative of workers with which it has a collective bargaining agreement or
other understanding, if any, a notice advising the labor organization or workers'
representatives of the contractor's commitments under this Section 3 clause and
will post copies of the notice in conspicuous places at the work site where both
employees and applicants for training and employment positions can see the
notice. The notice shall describe the Section 3 preference, shall set forth
minimum number and job titles subject to hire, availability of apprentice and
training positions, the qualifications for each; and the name and location of the
person(s) taking applications for each of the positions; and the anticipated date
the work shall begin.
D. The contractor agrees that it will include this Section 3 clause in every
subcontract to comply with regulation in 24 CFR Part 135, and agrees to take
appropriate action, as provided in an applicable provision of the subcontract or
in this Section 3 clause, upon finding that the subcontractor is in violation of the
regulations in 24 CFR Part 135. The contractor will not subcontract with any
subcontractor where it has notice or knowledge that the subcontractor has been
found in violation of regulations in 24 CFR 135.
E. The contractor will certify that any vacant employment positions',
including training positions that are filled (1) after the contractor is selected but
before the contract is executed, and(2) with persons other than those to whom the
regulations of 24 CFR Part 135 require employment opportunities to be directed,
were not filled to circumvent the contractor's obligations under 24 CFR part 135.
The contractor will not subcontract with any subcontractor where it has notice or
knowledge that the subcontractor has been found in violation of regulations in 24
CFR 135.
F. Noncompliance with HUD's regulation in 24 CFR Part 135 may result in
sanctions, termination of this contract for default, and debarment or suspension
from future HUD assisted contracts.
G. With respect to work performed in connection with Section 3 covered
Indian housing assistance, section 7(b) of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. section 450e) also applies to the work to be
performed under this Contract. Section 7(b) requires that to the greatest extent
feasible (i) preference and opportunities for training and employment shall be
given to Indians, and (ii) preference in the award of contracts and subcontracts
shall be given to Indian organizations and Indian-owned Economic Enterprises.
Parties to this contract that are subject to the provisions of Section 3 and Section
7(b) agree to comply with Section 3 to the maximum extent feasible, but not in
derogation of compliance with Section 7(b). "
Section to be quoted in covered contracts ends.
14.11.2 Developer Responsibilities for Section 3 Requirements.
City and Developer understand and agree that compliance with the provisions of Section
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3, the regulations set forth in 24 CFR Part 135, and all applicable rules and orders of HUD shall
be a condition of the Federal financial assistance provided to the project binding upon City and
Developer and their respective successors, assigns, contractors and subcontractors. Failure to
fulfill these requirements shall subject Developer and its contractors and subcontractors and their
respective successors and assigns to those sanctions specified by the grant agreement through
which Federal assistance is provided and to such sanctions as are specified by 24 CFR Part 135.
Developer's responsibilities include:
14.11.2.1 Implementing procedures to notify Section 3 residents and
business concerns about training, employment, and contracting
opportunities generated by Section 3 covered assistance;
14.11.2.2 Notifying potential contractors working on Section 3 covered
projects of their responsibilities;
14.11.2.3 Facilitating the training and employment of Section 3 residents
and the award of contracts to Section 3 business concerns;
14.11.2.4 Assisting and actively cooperating with the Neighborhood
Services Department in making contractors and subcontractors
comply;
14.11.2.5 Refraining from entering into contracts with contractors that are
in violation of Section 3 regulations;
14.11.2.6 Documenting actions taken to comply with Section 3; and
14.11.2.7 Submitting Section 3 Annual Summary Reports (Form HUD-
60002) in accordance with 24 CFR Part 135.90.
14.11.3 Section 3 Reporting Requirements.
In order to comply with the Section 3 requirements, Developer must submit the forms
attached hereto as Exhibit"I" - Section 3 Reporting Forms and take the following actions:
14.11.3.1 Report to the City all applicants for employment by contractor
and subcontractor on a quarterly basis. This shall include name,
address, zip code, date of application, and status (hired/not hired)
as of the date of the report.
14.11.3.2 Advertise available positions to the public for open competition,
and provide documentation to City with the quarterly report that
demonstrates such open advertisement, in the form of printout of
Texas Workforce Commission posting, copy of newspaper
advertisement, copy of flyers and listing of locations where
flyers were distributed, and the like.
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14.11.3.3 Report to City all contracts awarded by contractor and
subcontractor on a quarterly basis. This shall include name of
contractor and/or subcontractor, address, zip code, and amount of
award as of the date of the report.
14.12 Prohibition Against Discrimination.
14.12.1 General Statement.
Developer shall comply in the execution, performance or attempted performance of this
Contract with all non-discrimination requirements of 24 CFR Part 92.350 and Chapter 17,
Article III, Division 4—Fair Housing of the City Code. Developer may not discriminate against
any person because of race, color, sex, gender, religion, national origin, familial status, disability
or perceived disability, sexual orientation, gender identity, gender expression, or transgender, nor
will Developer permit its officers, members, agents, employees, vendors or project participants
to engage in such discrimination.
This Contract is made and entered into with reference specifically to Chapter 17, Article
III, Division 3 - Employment Practices of the City Code, and Developer hereby covenants and
agrees that Developer, its officers, members, agents, employees, vendors and contractors, have
fully complied with all provisions of same and that no employee, or applicant for employment
has been discriminated against under the terms of such ordinances by either or its officers,
members, agents, employees, vendors or contractors.
14.12.2 No Discrimination in Employment during the Performance of this
Contract.
During the performance of this Contract Developer agrees to the following provision, and
will require that its contractors, subcontractors and vendors also comply with such provision by
including it in all contracts with its contractors, subcontractors or vendors:
[Contractor's, Subcontractor's or Vendor's Name] will not unlawfully discriminate against
any employee or applicants for employment because of race, color, sex, gender, religion, national
origin, familial status, disability or perceived disability, sexual orientation, gender identity,
gender expression or transgender. /Contractor's, Subcontractor's or Vendors Name] will
take affirmative action to ensure that applicants are hired without regard to race, color, sex,
gender, religion, national origin, familial status, disability or perceived disability, sexual
orientation, gender identity, gender expression or transgender and that employees are treated
fairly during employment without regard to their race, color, sex, gender, religion, national
origin, familial status, disability or perceived disability, sexual orientation, gender identity,
gender expression or transgender. Such action shall include, but not be limited to, the following:
employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or
termination, rates of pay or other forms of compensation, and selection for training, including
apprenticeship. [Contractor's, Subcontractor's or Vendor's Name] agrees to post in conspicuous
places, available to employees and applicants for employment, notices setting forth the
provisions of this nondiscrimination clause.
[Contractor's. Subcontractor's or Vendor's Name]` will, in all solicitations or
advertisements for employees placed by or on behalf of [Contractor's, Subcontractor's or
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Vendor's Name]` , state that all qualified applicants will receive consideration for employment
without regard to race, color, sex, gender, religion, national origin, familial status, disability or
perceived disability, sexual orientation, gender identity, gender expression or transgender.
[Contractor's, Subcontractor's or Vendor's Name] covenants that neither it nor any of its
officers, members, agents, employees, or contractors, while engaged in performing this Contract,
shall, in connection with the employment, advancement or discharge of employees or in
connection with the terms, conditions or privileges of their employment, discriminate against
persons because of their age or because of any disability or perceived disability, except on the
basis of a bona fide occupational qualification, retirement plan or statutory requirement.
[Contractor's. Subcontractor's or Vendor's Name] further covenants that neither it nor its
officers, members, agents, employees, contractors, or persons acting on their behalf, shall
specify, in solicitations or advertisements for employees to work on this Contract, a maximum
age limit for such employment unless the specified maximum age limit is based upon a bona fide
occupational qualification, retirement plan or statutory requirement.
14.12.3 Developer's Contractors and the ADA.
In accordance with the provisions of the Americans With Disabilities Act of 1990
("ADA"), Developer warrants that it and any of its contractors will not unlawfully discriminate
on the basis of disability in the provision of services to the general public, nor in the availability,
terms and/or conditions of employment for applicants for employment with, or employees of
Developer or any of its contractors. DEVELOPER WARRANTS IT WILL FULLY
COMPLY WITH THE ADA'S PROVISIONS AND ANY OTHER APPLICABLE
FEDERAL, STATE AND LOCAL LAWS CONCERNING DISABILITY AND WILL
DEFEND, INDEMNIFY AND HOLD CITY HARMLESS AGAINST ANY CLAIMS OR
ALLEGATIONS ASSERTED BY THIRD PARTIES, CONTRACTORS,
SUBCONTRACTORS OR VENDORS AGAINST CITY ARISING OUT OF
DEVELOPER'S AND/OR ITS CONTRACTORS', SUBCONTRACTORS', VENDORS',
AGENTS' OR EMPLOYEES' ALLEGED FAILURE TO COMPLY WITH THE ABOVE-
REFERENCED LAWS CONCERNING DISABILITY DISCRIMINATION IN THE
PERFORMANCE OF THIS CONTRACT.
14.13. Prohibition Against Interest/Conflict of Interest.
14.13.1 Developer shall establish safeguards to prohibit its employees, board
members, advisors and agents from using positions for a purpose that is or gives the appearance
of being motivated by a desire for private gain for themselves or others, particularly those with
whom they have family, business or other ties. Developer shall disclose to City any such conflict
of interest or potential conflict of interest immediately upon discovery of same.
14.13.2 No employees, agents, consultants, officers or elected officials or appointed
officials of City or of Developer who exercise or have exercised any functions or responsibilities
with respect to activities assisted with HOME funds or who are in a position to participate in a
decision-making process or gain inside information with regard to these activities may occupy a
HOME-assisted housing unit, may obtain a financial interest or benefit from a HOME-assisted
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activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the
proceeds thereunder, either for themselves or those with whom they have family or business ties,
during their tenure or for 1 year thereafter, unless they are accepted in accordance with the
procedures set forth at 24 CFR Part 92.356.
14.13.2.1 Developer shall establish conflict of interest policies for Federal
Awards and shall provide such policies in writing to City in
accordance with the requirements of 2 CFR Part 200.112.
14.13.3 Disclosure of Conflicts of Interest.
In compliance with 2 CFR Part 200.112, Developer is required to timely disclose to City
in writing any potential conflict of interest, as described in this Section.
14.13.4 Disclosure of Texas Penal Code Violations.
Developer affirms that it will adhere to the provisions of the Texas Penal Code which
prohibits bribery and gifts to public servants.
14.13.5 Disclosure of Federal Criminal Law Violations.
In compliance with 2 CFR Part 200.113, Developer is required to timely disclose to City
all violations of federal criminal law involving fraud, bribery or gratuity violations potentially
affecting this Agreement.
14.14 Labor Standards.
14.14.1 As applicable, Developer agrees to comply with the requirements of the
Secretary of Labor in accordance with the Davis-Bacon Act (40 U.S.C. 276a-7) as amended, the
provisions of Contract Work Hours and Safety Standards Act (40 U.S.C. 327 et seq.) and all
other applicable Federal, state and local laws and regulations pertaining to labor standards
insofar as those acts apply to the performance of this Contract. Developer agrees to comply with
the Copeland Anti-Kick Back Act (18 U.S.C. 874 et seq.) and its implementing regulations of the
United States Department of Labor at 29 CFR Part 5. Developer shall maintain documentation
that demonstrates compliance with hour and wage requirements of this Contract and the HOME
Regulations. Such documentation shall be made available promptly to City for review upon
request.
14.14.2 Developer agrees that, except with respect to the rehabilitation or construction
of residential property containing less than 12 units assisted with HOME funds, all contractors
engaged under contract for construction, renovation or repair work financed in whole or in part
with assistance provided under this Contract, shall comply with Federal requirements adopted by
City pertaining to such contracts and with the applicable requirements of the regulations of the
Department of Labor under 29 CFR Parts 1, 3, 5 and 7 governing the payment of wages and ratio
of apprentices and trainees to journey workers; provided that, if wage rates higher than those
required under these regulations are imposed by state or local law, nothing hereunder is intended
to relieve Developer of its obligation, if any, to require payment of the higher wage. Developer
shall cause or require to be inserted in full provisions meeting the requirements of this paragraph
in all such contracts subject to such regulations.
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14.14.3 If Davis-Bacon is applicable, Developer shall provide City access to employee
payrolls, contractor and subcontractor payrolls and other wage information for persons
performing construction of the Required Improvements. Payrolls must be submitted to the
Neighborhood Services Department with each Reimbursement Request, and must be available to
Neighborhood Services Department staff upon request. In addition, Developer shall ensure that
City will have access to employees, contractors and subcontractors and their respective
employees in order to conduct onsite interviews with laborers and mechanics. Developer shall
inform its contractors and subcontractors that City staff or representatives of Federal agencies
may conduct periodic employee wage interview visits during construction of the project to
ensure compliance.
14.15 Subcontracting with Small and Minority Firms, Women's Business
Enterprises and Labor Surplus Areas.
14.15.1 For procurement contracts $50,000.00 or larger, Developer agrees to abide by
City's policy to involve Minority Business Enterprises and Small Business
Enterprises and to provide them equal opportunity to compete for contracts for
construction, provision of professional services, purchase of equipment and
supplies and provision of other services required by City. Developer agrees to
incorporate the City's BDE Ordinance, and all amendments or successor
policies or ordinances thereto, into all contracts and subcontracts for
procurement $50,000.00 or larger, and will further require all persons or
entities with which it so contracts to comply with said ordinance.
14.15.2 It is national policy to award a fair share of contracts to disadvantaged
business enterprises ("DBEs"), small business enterprises ("SBEs"), minority
business enterprises ("MBEs"), and women's business enterprises ("WBEs").
Accordingly, affirmative steps must be taken to assure that DBEs, SBEs,
MBEs, and WBEs are utilized when possible as sources of supplies,
equipment, construction and services.
14.15.3 In order to comply with the reporting requirements of 24 CFR Part 92.508
(a)(7)(ii) , Developer must submit the form attached hereto as Exhibit "K"
— MBE Reporting Form for each contract or subcontract with a value of
$25,000 or more paid, or to be paid, with HOME funds. This form shall be
submitted with the final Reimbursement Request.
14.16 Other Laws.
The failure to list any Federal, State or City ordinance, law or regulation that is applicable
to Developer does not excuse or relieve Developer from the requirements or responsibilities in
regard to following the law, nor from the consequences or penalties for Developer's failure to
follow the law, if applicable.
14.17 Assignment.
Developer shall not assign all or any part of its rights, privileges, or duties under this
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Contract without the prior written approval of City. Any attempted assignment of same without
approval shall be void, and shall constitute a breach of this Contract.
14.18 RiLyht to Inspect Developer Contracts.
It is agreed that City has the right to inspect and approve in writing, prior to any charges
being incurred, any proposed contracts between Developer and (i) its general contractor and
subcontractors, including any lower tier subcontractors engaged in any activity that is funded as
part of the construction of the Required Improvements, (ii) vendor contracts arising out of the
construction or sale of the Required Improvements, and (iii) any third party contracts to be paid
with HOME Funds.
14.19 Force Majeure.
If Developer becomes unable, either in whole or part, to fulfill its obligations under this
Contract due to acts of God, strikes, lockouts, or other industrial disturbances, acts of public
enemies, wars, blockades, insurrections, riots, epidemics, earthquakes, fires, floods, restraints or
prohibitions by any court, board, department, commission or agency of the United States or of
any States, civil disturbances, or explosions, or some other reason beyond Developer's control
(collectively, "Force Majeure Event"), the obligations so affected by such Force Majeure Event
will be suspended only during the continuance of such event and the completion date for such
obligations shall be extended for a like period. Developer will give City written notice of the
existence, extent and nature of the Force Majeure Event as soon as reasonably possible after the
occurrence of the event. Failure to give notice will result in the continuance of Developer's
obligation regardless of the extent of any existing Force Majeure Event. Developer will use
commercially reasonable efforts to remedy its inability to perform as soon as possible.
14.20 Survival.
Any provision of this Contract that pertains to the HOME Requirements, auditing,
monitoring, homebuyer income eligibility, record keeping and reports, City ordinances, the
provisions of Section 6.6 pertaining to SAM, or any other HOME Program requirements, and
any default and enforcement provisions necessary to enforce such provisions, shall survive the
term or earlier termination of this Contract for 5 years after the termination date and shall be
enforceable by City against Developer.
15. INDEMNIFICATION AND RELEASE.
DEVELOPER COVENANTS AND AGREES TO INDEMNIFY, HOLD
HARMLESS AND DEFEND, AT ITS OWN EXPENSE, CITY AND ITS OFFICERS,
AGENTS, SERVANTS AND EMPLOYEES FROM AND AGAINST ANY AND ALL
CLAIMS OR SUITS FOR PROPERTY LOSS OR DAMAGE AND/OR PERSONAL
INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER
HIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR
IN CONNECTION WITH THE EXECUTION, PERFORMANCE, ATTEMPTED
PERFORMANCE OR NONPERFORMANCE OF THIS CONTRACT AND/OR THE
OPERATIONS, ACTIVITIES AND SERVICES DESCRIBED HEREIN, WHETHER OR
NOT CAUSED IN WHOLE OR IN PART, BY ALLEGED NEGLIGENCE OF
OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS OR
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SUBCONTRACTORS OF CITY, AND DEVELOPER HEREBY ASSUMES ALL
LIABILITY AND RESPONSIBILITY OF CITY AND ITS OFFICERS, AGENTS,
SERVANTS, AND EMPLOYEES FOR ANY AND ALL CLAIMS OR SUITS FOR
PROPERTY LOSS OR DAMAGE AND/OR PERSONAL INJURY, INCLUDING
DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER KINDS OR
CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN
CONNECTION WITH THE EXECUTION, PERFORMANCE, ATTEMPTED
PERFORMANCE OR NONPERFORMANCE OF THIS CONTRACT AND
AGREEMENT AND/OR THE OPERATIONS, ACTIVITIES AND SERVICES
DESCRIBED HEREIN, WHETHER OR NOT CAUSED IN WHOLE OR IN PART BY
ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS, EMPLOYEES,
CONTRACTORS OR SUBCONTRACTORS OF CITY. DEVELOPER LIKEWISE
COVENANTS AND AGREES TO AND DOES HEREBY INDEMNIFY AND HOLD
HARMLESS CITY FROM AND AGAINST ANY AND ALL INJURY, DAMAGE OR
DESTRUCTION OF PROPERTY OF CITY, ARISING OUT OF OR IN CONNECTION
WITH ALL ACTS OR OMISSIONS OF DEVELOPER, ITS OFFICERS, MEMBERS,
AGENTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, VENDORS,
INVITEES, LICENSEES, OR PROJECT PARTICIPANTS, OR CAUSED, IN WHOLE
OR IN PART, BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS,
EMPLOYEES, CONTRACTORS OR SUBCONTRACTORS OF CITY.
IT IS THE EXPRESS INTENTION OF THE PARTIES, BOTH DEVELOPER
AND CITY, THAT THE INDEMNITY PROVIDED FOR THIS SECTION INCLUDES
INDEMNITY BY DEVELOPER TO INDEMNIFY AND PROTECT CITY FROM THE
CONSEQUENCES OF CITY'S OWN NEGLIGENCE, WHETHER THAT
NEGLIGENCE IS ALLEGED TO BE THE SOLE OR CONCURRING CAUSE OF THE
INJURY, DAMAGE OR DEATH.
DEVELOPER AGREES TO AND SHALL RELEASE CITY, ITS AGENTS,
EMPLOYEES, OFFICERS AND LEGAL REPRESENTATIVES FROM ALL
LIABILITY FOR INJURY, DEATH, DAMAGE OR LOSS TO PERSONS OR
PROPERTY SUSTAINED IN CONNECTION WITH OR INCIDENTAL TO
PERFORMANCE UNDER THIS CONTRACT, EVEN IF THE INJURY, DEATH,
DAMAGE OR LOSS IS CAUSED BY CITY'S SOLE OR CONCURRENT
NEGLIGENCE.
DEVELOPER SHALL REQUIRE ALL OF ITS CONTRACTORS,
SUBCONTRACTORS AND VENDORS TO INCLUDE IN THEIR CONTRACTS AND
SUBCONTRACTS A RELEASE AND INDEMNITY IN FAVOR OF CITY IN
SUBSTANTIALLY THE SAME FORM AS ABOVE.
16. WAIVER OF IMMUNITY BY DEVELOPER.
If Developer, as a charitable or nonprofit organization, has or claims an immunity or
exemption (statutory or otherwise) from and against liability for damages or injury, including
death, to persons or property, Developer hereby expressly waives its rights to plead defensively
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such immunity or exemption as against City. This Section shall not be construed to affect a
governmental entity's immunities under constitutional, statutory or common law.
17. INSURANCE AND BONDING.
Developer will maintain coverage in the form of insurance or bond in the amount of
$182,000.00 to insure against loss from the fraud, theft or dishonesty of any of Developer's
officers, agents, trustees, directors or employees. The proceeds of such insurance or bond shall
be used to reimburse City for any and all loss of HOME Funds occasioned by such misconduct.
To effectuate such reimbursement, such fidelity coverage shall include a rider stating that
reimbursement for any loss or losses shall name City as a Loss Payee.
Developer shall furnish to City, in a timely manner, but not later than 10 calendar days
after the Effective Date, certificates of insurance as proof that it has secured and paid for policies
of commercial insurance as specified herein. If City has not received such certificates as set
forth herein, Developer shall be in default and City may at its option terminate this Contract.
Such insurance shall cover all insurable risks incident to or in connection with the
execution, performance, attempted performance or nonperformance of this Contract. Developer
shall maintain, or require its general contractor to maintain, the following coverages and limits
thereof:
Commercial General Liability (CGL)Insurance
$1,000,000 each occurrence
$2,000,000 aggregate limit
Business Automobile Liability Insurance
$1,000,000 each accident on a combined single-limit basis, or
$ 250,000 Property Damage
$ 500,000 Bodily Injury per person per occurrence
$1,000,000 Aggregate
Insurance policy shall be endorsed to cover"Any Auto" defined as autos owned,
hired and non-owned. Pending availability of the above coverage and at the discretion
of City, the policy shall be the primary responding insurance policy versus a personal
auto insurance policy if or when in the course of Developer's business as contracted
herein.
Workers' Compensation Insurance
Part A: Statutory Limits
Part B: Employer's Liability
$100,000 each accident
$100,000 disease-each employee
$500,000 disease-policy limit
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Note: Such insurance shall cover employees performing work on any and all projects
including but not limited to construction, demolition, and rehabilitation. Developer or its
contractors shall maintain coverages, if applicable. In the event the respective contractors
do not maintain coverage, Developer shall maintain the coverage on such contractor, if
applicable, for each applicable contract.
Additional Requirements
Such insurance amounts shall be revised upward at City's reasonable option and no more
frequently than once every 12 months, and Developer shall revise such amounts within 30 days
following notice to Developer of such requirements.
Developer will submit to City documentation that it, and its general contractor, have obtained
insurance coverage and have executed bonds as required in this Contract prior to payment of any
monies provided hereunder.
Where applicable, insurance policies required herein shall be endorsed to include City as an
additional insured as its interest may appear. Additional insured parties shall include employees,
officers, agents, and volunteers of City.
The Workers' Compensation Insurance policy shall be endorsed to include a waiver of
subrogation, also referred to as a waiver of rights of recovery, in favor of City.
Any failure on part of City to request certificate(s) of insurance shall not be construed as a
waiver of such requirement or as a waiver of the insurance requirements themselves.
Insurers of Developer's insurance policies shall be licensed to do business in the State of Texas
by the Department of Insurance or be otherwise eligible and authorized to do business in the state
of Texas. Insurers shall be acceptable to City insofar as their financial strength and solvency and
each such company shall have a current minimum A.M. Best Key Rating Guide rating of A: VII
or other equivalent insurance industry standard rating otherwise approved by City.
Deductible limits on insurance policies shall not exceed $5,000 per occurrence unless otherwise
approved by City.
In the event there are any local, Federal or other regulatory insurance or bonding requirements
for the project, and such requirements exceed those specified herein,the former shall prevail.
Developer shall require its contractors to maintain applicable insurance coverages, limits, and
other requirements as those specified herein; and, Developer shall require its contractors to
provide Developer with certificate(s) of insurance documenting such coverage. Also, Developer
shall require its contractors to have City and Developer endorsed as additional insureds (as their
interest may appear) on their respective insurance policies.
Professional Liability coverage shall be in force and may be provided on a claims made basis.
This coverage may also be referred to as Management Liability, and shall protect the insured
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against claims arising out of alleged errors in judgment, breaches of duty and wrongful acts
arising out of their management duties.
Developer shall require its general contractor to maintain builders risk insurance at the value of
the construction.
18. CERTIFICATION REGARDING LOBBYING.
Developer hereby certifies, to the best of its knowledge and belief, that:
No Federal appropriated funds have been paid or will be paid, by or on behalf of
Developer, to any person for influencing or attempting to influence an officer or
employee of any agency, a member of Congress, an officer or employee of
Congress in connection with the awarding of any Federal contract, the making of
any Federal grant, the making of any Federal loan, the entering into of any
cooperative agreement and the extension, continuation, renewal, amendment, or
modification of any Federal contract, grant, loan or cooperative agreement.
If any funds other than federally appropriated funds have been paid or will be
paid to any person for influencing or attempting to influence an officer or
employee of any agency, member of Congress in connection with this Federal
contract, grant, loan or cooperative agreement, Developer shall complete and
submit Standard Form-LLL, "Disclosure Form to Report Lobbying, " in
accordance with its instructions.
This certification is a material representation of fact upon which reliance was
placed when this Contract was made or entered into. Submission of this
certificate is a prerequisite for making or entering into this Contract imposed by
31 U.S.C. Section 1352. Any person who fails to file the required certification
shall be subject to a civil penalty of not less than $10,000.00 and not more than
$100,000.00 for each such failure.
Developer shall require that the language of this certification be included in all
subcontracts or agreements involving the expenditure of Federal funds.
19. LITIGATION AND CLAIMS.
Developer shall give City immediate notice in writing of any action, including any
proceeding before an administrative agency, filed against Developer in conjunction with this
Contract or the project. Developer shall furnish immediately to City copies of all pertinent
papers received by Developer with respect to such action or claim. Developer shall provide a
notice to City within 10 days upon filing under any bankruptcy or financial insolvency provision
of law.
20. NOTICE.
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All notices required or permitted by this Contract must be in writing and shall be effective
upon receipt when (i) sent by U.S. Mail with proper postage, certified mail return receipt
requested or by a nationally recognized overnight delivery service; and (ii) addressed to the other
Party at the address set out below or at such other address as the receiving Party designates by
proper notice to the sending Party.
City:
City Attorney's Office
200 Texas Street
Fort Worth, TX 76102
Attention: Paige Mebane
Telephone: 817-392-7600
Copy to:
Neighborhood Services Department
200 Texas Street
Fort Worth, TX 76102
Attention: Director
Telephone: 817-392-7540
Developer:
Housing Channel
4200 South Freeway, Tower Suite 307
Fort Worth, TX 76115
Attention: President
21. DEVELOPER HAS LEGAL AUTHORITY TO ENTER INTO CONTRACT.
Developer represents that it possesses the legal authority, pursuant to any proper,
appropriate and official motion, resolution or action passed or taken, to enter into this Contract
and to perform the responsibilities herein required.
22. COUNTERPARTS.
This Contract may be executed in multiple counterparts, each of which shall be
considered an original, but all of which shall constitute one instrument which may be sufficiently
evidenced by one counterpart.
[SIGNATURES APPEAR ON NEXT PAGE]
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EXECUTED to be effective ective Date.
�FORT�'L
..O
ATTEST• s`' OF FORT WORTH
Mary f Kayser, Cite re y ernando Costa, Assistant City Manager
M&C G-18521 VDate: 8/4/2 (AS Date: 9
M&C C-28737 Date: 6/26/201
1295 Cert. No.: ++•A2012S `- 1Lt-3a"a�
ROVED AS TO FORM AND LEGALITY:
&WA.S-,
Paige Meb e, Assistant City Attorney
H SIN H N
By:
D es , ident
Date:
City of Fort Worth Agreement Compliance
Manager:
By signing I acknowledge that I am the person responsible
for the monitoring and administration of this contract, including
ensuring
Jall performance and reporting requirements.
Name: A4 L[,
Title: _ tlsil �.V• 54 G,i�t�►�n
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
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EXHIBITS:
Exhibit "A"—Project Summary—Scope of Work
Exhibit "A-1"—Final Elevations
Exhibit "A-2"—Environmental Mitigation Action
Exhibit "B"—Budget
Exhibit"C"—Construction and Reimbursement Schedule
Exhibit"D"—Audit Requirements
Exhibit "E"—Loan Documents
Exhibit "F"—Reimbursement Forms
Exhibit"G"—HOME Project Compliance Report(Single Family)
Exhibit "H"—Federal Labor Standards Provisions -Davis-Bacon Requirements
Exhibit "I" —Section 3 Reporting Forms
Exhibit "J" —Standards for Complete Documentation
Exhibit"K"—MBE Reporting Form
CHDO SINGLE FAMILY CONTRACT Page 46
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EXHIBIT "A"
PROJECT SUMMARY - SCOPE OF WORK
TARRANT COUNTY HOUSING PARTNERSHIP, INC.
3625 EAGLE NEST STREET
DESCRIPTION:
Developer will construct an approximately 1,800 square foot, 4-bedroom, 2-bath single-family house
on a lot size of approximately 5,000-6,000 (range) square feet. Construction will include a one-car
garage. Fencing will be located of the rear and side yards. Landscaping will include the front yard.
The construction of the house shall contain any reasonable and necessary accessibility requirements
requested by a disabled HOME Eligible Buyer. If the cost of such accessibility requirements exceeds
the Budget for the construction of the house, such additional expense shall be paid by the HOME
Eligible Buyer.
Developer must provide the demographic information on the attached Exhibit "G"HOME Project
Compliance Report.
The following appliances and related amenities will be included in the sale of the house:
• Washer and Dryer hookups
• Central Air Conditioning
• Stove
• Oven
• Dishwasher
• Vent-a-hood
• Garbage Disposal
• Electric Garage Door with Remote
• Mailbox located at door
• Refrigerator is not required to be furnished by Developer
The following materials shall be used for the construction of the house:
• Fence (back yard)
• Landscaping(front)
• Roofing Materials 3 TAB 25 YR
• Siding(percentage) 100%
• Foundation Type Post Tension
• HVAC 15 Seer Heat Pump
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EXHIBIT 66A-1"
FINAL ELEVATIONS, PLANS AND SPECIFICATIONS
TARRANT COUNTY HOUSING PARTNERSHIP, INC.
3625 EAGLE NEST STREET
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
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ENVIRONMENTAL MITIGATION ACTION
TARRANT COUNTY HOUSING PARTNERSHIP, INC.
3625 EAGLE NEST STREET
Not Applicable
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EXHIBIT "B"
BUDGET
HOUSING CHANNEL
3625 Eagle Nest Street
Total Cost: $245,702.00
Project HOME Funds Awarded: $90,222.00
HOME Funds will be paid only as reimbursement for eligible expenses.
Development Budget
Use of Funds Source of Funds
Predevelopment Cost HOME$ OTHERS SOURCE OF OTHER TOTAL$
FUNDS FUNDS FUNDS FUNDS
(1) (2) (Names) (1+2)
1. Market Study 117.00
2. Feasibility(i.e.: preliminary work 4,550.00
write-up, cost estimates, design,bond)
3. Other
Total Predevelo meat Cost(1+2=3) 4,667.00 4,667.00
Development Cost
4. Land and/or building acquisition 8,800.00 8,800.00
5. Soft Costs(Utilities, Security,etc.) 3,000.00 3,000.00
6. Construction Cost 40,269.00 141,731.00 Inwood Bank 182,000.00
7. Fence
8. Landscape
9. Contingency 3,640.00 3,640.00
10. Appraisal
11. Architect&Engineering Fees 4,910.00 4,910.00
12. Construction Management Fee/
Developer Fee
13. Construction Loan Interest 2,600.00 I,919.00 Inwood Bank 4,519.00
14. Property Survey
15. Legal Fees
16. Real Estate Fees 10,140.00 Proceeds 10,140.00
17. Utility Hookup/Impact Fees
18. Title&Recording Fees 1,690.00 Proceeds 1,690.00
19. Program and Related Expenses
20. Construction Management
21. Bond Fees
Total Development Cost(Total of items 67,886.00 155,480.00 223,366.00
4-20
22. Developer Fee(10%of Total 22,336.00 225336.00
Development Costs)
Total Cost 90,222.00 155,480.00 245,702.00
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EXHIBIT "C"
PROJECT AND REIMBURSEMENT SCHEDULE
HOUSING CHANNEL
3625 Eagle Nest Street
Phase Activity Beginning Week—subject to
weather permitting
PHASE I ACTIVITIES: Contract signed
Land and/or Building Acquisition
Architectural&Engineering Fees,
Survey
PHASE I DEADLINE: $16,306
9/30/18 Ist Payment*
PHASE II ACTIVIITES: Site Preparation
Architectural&Engineering Fees
Construction loan interest
PHASE II DEADLINE: 2°d Payment* $2,721
10/31/18
PHASE III ACTIVIITES: Construction loan interest
Utility hookup/Impact fees
PHASE III DEADLINE: 3�d Payment* $1,650
12/31/18
PHASE N ACTIVIITES: Construction costs
Construction loan interest
Utility hookup/Impact fees
PHASE N DEADLINE: 4"Payment* $23,719
2/28/19
PHASE V ACTIVITIES: Construction costs
Construction loan interest
Utility hookup/Impact fees
PHASE V DEADLINE: FINAL PAYMENT** $23,490
3/31/19
CONSTRUCTION TOTAL
DEVELOPER FEE Paid after closing of sale to HOME 10% of total eligible
Eligible Buyer per Section 7.8* development costs
*Developer will be reimbursed for eligible expenses only. All amounts are estimates and are subject to change.
**Exhibit"G"-HOME Project Compliance Report must be submitted prior to reimbursement for Construction Final Payment,Construction
Final Payment will not be made after closing of sale to the Eligible HOME Buyer.
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street Rev 9/06/2018
EXHIBIT "D"
AUDIT REQUIREMENTS
HOUSING CHANNEL
3625 EAGLE NEST STREET
Not Applicable
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street Rev 9/06/2018
EXHIBIT "E"
LOAN DOCUMENTS
HOUSING CHANNEL
3625 EAGLE NEST STREET
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street Rev 9/06/2018
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON,
YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION
FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC
RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE
NUMBER
DEED OF TRUST
Terms
Date:
Grantor: Housing Channel
a Texas non-profit corporation.
Grantor's Mailing Address:
4200 South Freeway, Tower Suite 307, Fort Worth, Tarrant County, TX 76115
Trustee: Vicki S. Ganske or Leann Guzman
Trustee's Mailing Address:
C/O City Attp"q's Office
200 Tex St.
Fort Worth, Tarrant County, TX 76102
Lender: City of Fort Worth,`F Texas municipal corporation
�
Lender's Mailing Address:
C/O Neighborhood Services Department
1000 Throckmorton St.
Fort Worth, Tarrant County, TX 76102
Loan Authority:
The loan evieed- y the Note and secured by this Deed of Trust is being made pursuant
to the HOME I stment Partnerships Program authorized under Title II of the Cranston-
Gonzales National Affordable Housing Act of 1990, as amended, 42 USC 12701 et seq.
(the "HOME Program") and the HOME Investment Partnership Program Final Rule, as
amended, 24 CFR Part 92 et seq. (the "HOME Regulations") with HOME funds.
Obligation
Note
Date:
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street Rev 9/06/2018
Original principal amount:
Borrower: Housing Channel, a Texas non-profit corporation
Lender: City of Fort Worth, Texas, a Texas municipal corporation
Maturity Date:
Property (including any improvements):
SEE EXHIBIT "A" ATTACHED HERETO AND INCORP, TED HEREIN FOR
ALL PURPOSES
Prior Lien:
None
Other Exceptions to Conveyance and Warranty:
Easements, rights-of-way, and prescriptive rights, whether of record or no "all presently
recorded and validly existing recorded instruments other than conveyances of the surface fee
estate that affect the Property; liens described in this Deed of Trust; and, taxes for the current
year.
For value received and to secure payment of tie_,%ligation,Grantor conveys the Property
to Trustee in trust. Grantor warrants and agrees to defendbe title to the Property, subject to the
Other Exceptions to Conveyance and Warranty. On payment of the Obligation and all other
amounts secured by this Deed of Trust, this Deed of Trust will have no further effect, and Lender
will release it at Grantor's expense.
Clauses and "yeants
A. Grantor's Obligations
Grantor agrees to='
1. keep the Property in good repair and condition;
2. pay all tomes and assessments on the Property before delinquency and provide proof
of paymegt;df same upon request by Lender;
3. defend title to the Property subject to the Other Exceptions to Conveyance and
Warranty and preserve the lien's priority as it is established in this Deed of Trust;
4. maintain, in a form acceptable to Lender, an insurance policy that—
a. covers all improvements for their full insurable value as determined when
the policy is issued and renewed,unless Lender approves a smaller amount
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street Rev 9/06/2018
in writing;
b. contains an 80 percent coinsurance clause;
C. provides all-risk coverage;
d. protects Lender with a standard mortgage clause;
e. provides flood insurance at any time the Property is in a flood hazard area;
and
f. contains such other coverage as Lender inonably require;
5. comply at all times with the requirements of the 80 percent coinsurance clause;
6. deliver the insurance policy to Lender within ten days of the date of this Deed of
Trust and deliver renewals to Lender at least fifteen days before expiration;
7. obey all laws, ordinances, and restrictive covenants applicable to the Property;
8. keep any buildings occupied as required by the insurance policy;
9. if the lien of this Deed of Trust is not a first lien, pay or cause to be paid all prior
lien notes and abide by or cause to be abide4y all prior lien instrufts; and,
10. notify Lender of any change of alVp'
B. Lender's Rights
1. Lender may appoint in writing a substitute trustee, succeeding to all rights and
responsibilities of Trustee.
2. If the proceeds of the Obligation are used to pay any debt secured by prior liens,
Lender is subrogated to all the rights and liens of the holders of any debt so paid.
3. Lender may apply any proceeds received under the insurance policy either to reduce
the Obligation or to repair orr place damaged or destroyed improvements covered by the policy.
If the Property is Grantor's,;primary residence and Lender reasonably determines that repairs to
the improvements are economically feasible, Lender will make the insurance proceeds available
to Grantor for repairs.
4. Notwithstanding the terms of the Note to the contrary, and unless applicable law
prohibits, all payments received by Lender from Grantor with respect to the Obligation or this
Deed of Trust may, at Lender's discretion, be applied first to amounts payable under this Deed of
Trust and then to amounts due and payable to Lender with respect to the Obligation, to be applied
to late charges,principal, or interest in the order Lender in its discretion determines.
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street Rev 9/06/2018
5. If Grantor fails to perform any of Grantor's obligations, Lender may perform those
obligations and be reimbursed by Grantor on demand for any amounts so paid, including
attorney's fees, plus interest on those amounts from the dates of payment at the rate stated in the
Note for matured, unpaid amounts. The amount to be reimbursed will be secured by this Deed of
Trust.
6. If there is a default on the Obligation or if Grantor fails to perform any of Grantor's
obligations and the default continues after any required notice of the default and the time allowed
to cure, Lender may—
..:..
a. declare the unpaid principal balance o e Obligation immediately due;
b. direct Trustee to foreclose this lien, `in which caseLender or Lender's
agent will cause notice of the foreclosure sale to be given as ppvided by
the Texas Property Code as then in effected
s
C. purchase the Property at any foreclosure sale by offering the highest bid
and then have the bid credited on the Obligation.
7. Lender may remedy any default without waiving it and may waive any default
without waiving any prior or subsequent default.
8. If the Property is acquired by Lender by foreclosure, Grantor's right to any
insurance policies and proceeds resulting from damage to the Property prior the acquisition shall
pass to Lender to the extent of the sums secured by this Deed of Trust immediately prior to the
acquisition.
9. Lender'or its agents may make reasonable entries upon and inspections of the
Property. Lender shall give Borrower notice at the time of or prior to an inspection giving
reasonable cause for the inspection.
C. Trustee's Rights and Duties
If directed by Lender to foreclose this lien, Trustee will—
1. either personally or by agent give notice of the foreclosure sale as required by the
Texas Property Code as then in effect;
2. sell and convey all or part of the Property "AS IS" to the highest bidder for cash
with a general warranty binding Grantor, subject to the Prior Lien and to the Other Exceptions to
Conveyance and Warranty and without representation or warranty, express or implied, by
Trustee;
3. from the proceeds of the sale,pay, in this order—
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street Rev 9/06/2018
a. expenses of foreclosure, including a reasonable commission to Trustee;
b. to Lender, the full amount of principal, interest, attorney's fees, and other
charges due and unpaid;
C. any amounts required by law to be paid before payment to Grantor; and
d. to Grantor, any balance; and
4. be indemnified, held harmless, and defended by J against all costs, expenses,
and liabilities incurred by Trustee for acting in the execution or enforcement of the trust created
by this deed of trust, which includes all court and other costs,including,attorney's fees, incurred
by Trustee in defense of any action or proceeding taken against Trustee in that capacity.
D. General Provisions
1. If any of the Property is sold under this! d of Trust, Grantor must immediately
surrender possession to the purchaser. If Grantor fails to do so, Grantor will become a tenant at
sufferance of the purchaser, subject to an action for forcible detainer.
2. Recitals in any trustee's deed conveying the Property will be presumed to be true.
3. Proceeding under this Deed of Trust, filing suit for foreclosure, or pursuing any
other remedy will not constitute an election of remedies.
4. This lien will remain superior to liens later created even if the time of payment of
all or part of the Obligation is extended or part of tho-froperty is released.
5. If at .gartion of the Obligation cannot be lawfully secured by this Deed of Trust,
payments will be applied first to discharge that portion.
6. _ Grantor assigns to Lender all amounts payable to or received by Grantor from
condemnatie , f all or part of the Property, from private sale in lieu of condemnation, and from
damages caused-py public works or construction on or near the Property. After deducting any
expenses incurred, including attorney's fees and court and other costs, Lender will either release
any remaining amounts to Grantor or apply such amounts to reduce the Obligation. Lender will
not be liable for failure to collect or to exercise diligence in collecting any such amounts.
Grantor will immediately give Lender notice of any actual or threatened proceedings for
condemnation of all or part of the Property.
7. Grantor assigns to Lender absolutely, not only as collateral, all present and future
rent and other income and receipts from the Property. Grantor warrants the validity and
enforceability of the assignment. Grantor may as Lender's licensee collect rent and other income
and receipts as long as Grantor is not in default with respect to the Obligation or this Deed of
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street Rev 9/06/2018
Trust. Grantor will apply all rent and other income and receipts to payment of the Obligation and
performance of this Deed of Trust, but if the rent and other income and receipts exceed the
amount due with respect to the Obligation and the deed of trust, Grantor may retain the excess. If
Grantor defaults in payment of the Obligation or performance of this Deed of Trust, Lender may
terminate Grantor's license to collect rent and other income and then as Grantor's agent may rent
the Property and collect all rent and other income and receipts. Lender neither has nor assumes
any obligations as lessor or landlord with respect to any occupant of the Property. Lender may
exercise Lender's rights and remedies under this paragraph without taking possession of the
Property. Lender will apply all rent and other income and receipts collected under this paragraph
first to expenses incurred in exercising Lender's rights and remedies and then to Grantor's
obligations with respect to the Obligation and this Deed of Trust in the order determined by
Lender. Lender is not required to act under this paragraph, and acting under this paragraph does
not waive any of Lender's other rights or remedies. If Grantor becomes a voluntary or
involuntary debtor in bankruptcy, Lender's filing a proof of cl* in bankruptcy will be deemed
equivalent to the appointment of a receiver under Texas
8. Interest on the debt secured,by this Deed of` t will not exceed the maximum
amount of non-usurious interest that may)' acted for, taken reserved, charged, or received
under law. Any interest in excess of that maximbian amount will b teredited on the principal of
the debt or, if that has been paid, refunded. Ori any acceleration or required or permitted
prepayment, any excess interest will be canceled automatically as of the acceleration or
prepayment or, if already paid, credited on the principal of the debt or, if the principal of the debt
has been paid, refunded. This provision overrideany conflicting provisions in this and all other
instruments concerning the debt.
9. In no event may this Deed of'gust secure payment of any debt that may not
lawfully be secured by a lien on real estate or create a lien otherwise prohibited by law.
10. When the context req ; singular nouns and pronouns include the plural.
11. the term Not , ncludes all extensions, modifications, and renewals of the Note
and all amounts secured by th3 'Deed of Trust.
12. This Deed of Trust binds, benefits, and may be enforced by the successors in
interest of all parties.
13. If Grantor and Borrower are not the same person, the term Grantor includes
Borrower.
14. Grantor and each surety, endorser, and guarantor of the Obligation waive all
demand for payment, presentation for payment, notice of intention to accelerate maturity, notice
of acceleration of maturity, protest, and notice of protest, to the extent permitted by law.
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street Rev 9/06/2018
15. Grantor agrees to pay reasonable attorney's fees, trustee's fees, and court and
other costs of enforcing Lender's rights under this Deed of Trust if this Deed of Trust is placed in
the hands of an attorney.
16. If any provision of this Deed of Trust is determined to be invalid or
unenforceable,the validity or enforceability of any other provision will not be affected.
17. The term Lender includes any mortgage servicer for Lender.
18. Grantor represents that this Deed of Trust and the Note are given for the following
purposes:
The debt evidenced by the Note is in payment of the purchase price of the
Property and the development costs of the Required Improvements as described in
the Contract; the debt is secured both by the Deed of Trust and by a vendor's lien
on the Property. This Deed of Trust does not waive the vendor's lien, and the two
liens and the rights created by this Deed of Trust are cumulative. Lender may
elect to enforce either of the iens without waiving the other or may enforce both.
19. If the Property is transferred by foreclosure, the traWeree will acquire title to all
insurance policies on the Property including all paid but unearned premiums.
20. Lender may declare the debt secured by this Deed of Trust immediately payable
and invoke any remedies providedin this Deed of Trust for default if Grantor transfers any of the
Property to a person who is not a permitted transferee without Lender's prior written consent.
"Permitted transferee'' means any other person controlling, controlled by, or under common
control with Grantor. Lender shall not exercise this option if federal law as of the date of this
Deed of Trust prohibits such exercise.
21. THIS CONVEYANCE IS MADE AND ACCEPTED SUBJECT TO THE
FOLLOWING CONDITIONS AND RESTRICTIONS:
The Note is the Note required in City Secretary Contract No. between Grantor
and Lender dated and has been executed and delivered in accordance with
that contract (the "Contract"). The funds advanced by Lender are HOME funds and the
Contract requires that the residential housing located on the Property and constructed
with a portion of the HOME funds must qualify and remain affordable housing in
accordance with the HOME Program and the HOME Regulations for a specified time
period as more particularly described in the Contract (the "Affordability Period"). The
loan evidenced by the Note and secured by this Deed of Trust will be in default and the
Principal Amount and any other sums due thereunder may be declared immediately
payable if the residential housing located on the Property is not sold to a HOME Eligible
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street Rev 9/06/2018
Buyer as more particularly described in the Contract and the HOME Regulations.
This Deed of Trust has also been executed and delivered pursuant to the terms of the
Contract. Grantor agrees to perform each and every obligation set forth therein and will
not permit a default to occur thereunder. Any default in the performance of Grantor's
obligations under the terms of the Contract or the HOME Program or HOME Regulations
shall be deemed a default in the terms of the Note and Lender may declare the debt
secured by this Deed of Trust immediately payable and inv any remedies provided
herein for default.
23. THE NOTE AND THE DEED OF TRUST CONSTITUTE THE FINAL
AGREEMENT OF THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.
HOUSING CHANNEL
419= — xmbc
Donna VanNess, President
STATE OF TEXAS
COUNTY OF TARRANT
This instrument was aGknvvci *fore me on , 20_by Donna
VanNess, the President of Tarrant CountyTousing Partnership, Inc., a Texas non-profit
corporation, on behalf of said corporation.
NOTARY PUBLIC, STATE OF TEXAS
AFTER RECORDING RETURN TO:
City of Fort Worth
C/O Neighborhood Services Department
200 Texas St.
Fort Worth, Tarrant County, TX 76102
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street Rev 9/06/2018
EXHIBIT "A"
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street Rev 9/06/2018
PROMISSORY NOTE
Date:
Borrower: Housing Channel
a Texas non-profit corporation
Borrower's Mailing Address:
4200 South Freeway, Tower Suite 307, Fort Worth, Tarrant County, TX 76115
Lender: City of Fort Worth, Texas, a Texas municipal corporation
Place for Payment:
C/O Director of Neighborhood Services Department
200 Texas St.
Fort Worth, Tarrant County, TX 76102
or at any other place that ender may designate in writing
Principal Amount:
Loan Authority:
The loan evidenced by this Note (the "Loan") is Wng made pursuant to the HOME
Investment Partnerships Program authorized under Title II of the Cranston-Gonzalez
National Affordable Housing Act of 1990,,as amended, 42 USC 12701 et seq. ("HOME
Program") and the HOME Investment Partnerships Program Final Rule, as amended, 24
CFR Part 92 et seq. (the"HOME Regulations") with HOME funds.
Annual Interest Rat' Zero Percent(0%)
Maturity.Date:
Terms of Payment (principal and interest):
This Note is the Promissory Note required in City Secretary Contract No.
between Borrower and Lender dated and has been executed and
delivered in accordance with that contract (the "Contract"). The funds advanced by
Lender are HOME funds and the Contract requires that the house located on the Property
and constructed with a portion of the HOME funds must qualify and remain affordable
housing in accordance with the HOME Program and the HOME Regulations for a
specified time period as more particularly described in the Contract (the "Affordability
Period"). The Loan will be in default and the Principal Amount and any other sums due
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street
Rev 9/06/2018
hereunder may be declared immediately payable if all of the residential housing located
on the Property is not sold to HOME Eligible Buyers as more particularly described in
the Contract and the HOME Regulations.
This Note is subject to all terms and conditions of the Contract. The Loan will be
forgiven provided that (i) the house is sold to a HOME Eligible Buyer in accordance with
HOME Program requirements, (ii) Lender receives the Sales_Proceeds, and (iii) Borrower
is not otherwise in default of the Loan terms or Contract provisions. In the event the
Loan is not forgiven in accordance with the terms of the Contract, the Principal Amount
will be payable in full on the Maturity Date.
Security for Payment:
This Note is secured by a Deed of Trust of even date from Borrower to Vicki S. Ganske
or Leann Guzman, Trustee, both of which cover the following real property:
SEE EXHIBIT "A" ATTACHED HERETO AND INCORPORATED HEREIN FOR
ALL PURPOSES
Other Security for Payment: As set forth in the Contract.
Borrower promises to pay to the order of Lender the Principal Amount if not otherwise
forgiven. This Note is payable at the Place for Payment and according to the Terms of Payment.
All unpaid amounts are due by the Maturity Date, unless otherwise extended as provided for in
the Contract. After maturity, Borrower promises to pay any unpaid principal balance.
If Borrower defaults in the payment of this Note or in the performance of its obligations
under the Contract or the HOME Program or the HOME Regulations or any other obligation in
any instrument securing or collateral to this Note, Lender may declare the unpaid principal
balance, and any other amounts owed on the Note immediately due. Borrower and each surety,
endorser, and guarantor waive all demand for payment, presentation for payment, notice of
intention to accelerate maturity, notice of acceleration of maturity, protest, and notice of protest,
to the extent permitted by law.
Notwithstanding anything to the contrary, if a monetary event of default occurs under the
terms of any of the Loan documents, prior to exercising any remedies Lender shall give Borrower
written notice of such default. Borrower shall have a period of 30 days after such notice is given
within which to cure the default prior to exercise of remedies by Lender under the Loan documents.
Notwithstanding anything to the contrary, if a non-monetary event of default occurs under the terms
of any of the Loan documents,prior to exercising any remedies, Lender shall give Borrower written
notice of such default. If the default is reasonably capable of being cured within 30 days, Borrower
shall have such period to effect a cure prior to exercise of remedies by Lender under the Loan
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street
Rev 9/06/2018
documents. If the default is such that it is not reasonably capable of being cured within 30 days, and
if Borrower (a) initiates corrective action within said period, and (b) diligently, continually, and in
good faith works to effect a cure as soon as possible, then Borrower shall have such additional time
as is reasonably necessary to cure the default prior to exercise of any remedies by Lender. In no
event shall Lender be precluded from exercising remedies if its security becomes or is about to
become materially jeopardized by any failure to cure a default or the default is not cured within 180
days after the fust notice of default is given.
Notices given to Borrower shall be in writing and delivered to the addresses listed above,
or to such other address as Borrower designates by written notice to Lender. Each such notice or
other communication shall be effective upon receipt when sent by U. S. Mail, postage prepaid
and by certified mail, return receipt requested; or by a nationally recognized ov rniL,kft delivery
service.
Borrower also promises to pay reasonable attorney's fees and court and other costs if this
Note is placed in the hands of an attorney to collect or enforce the Note. Borrower will pay
Lender these expenses and interest on demand at the Place for Payment. These expenses will
become part of the debt evidenced by the Note and will be secured: - y security for payment.
Borrower may prepay this Note at any time before the Maturity Date without penalty or
premium so long as the house located on the Property and constructed with a portion of the
HOME Funds qualifies--a' remains affordable housing in accordance with the HOME Program
and the HOME Regulations for the applicable Affordability Period specified in the Contract. .
Interest on the debt evidenced by this Note will not exceed the maximum rate or amount
of non-usurious interest that may be contracted for, taken, reserved, charged, or received under
law. Anyriterest in excess of that .maximum amount will be credited on the Principal Amount
or, if the:principal Amount has been'
- 'd ,.refunded. On any acceleration or required or permitted
prepayment, any excess interest canceled automatically as of the acceleration or
prepayment or, if the excess interest has already been paid, credited on the Principal Amount or,
if the Principal Amount has been paid, refunded. This provision overrides any conflicting
provisions in this Note and all other instruments concerning the debt.
Each Borrower is responsible for all obligations represented by this Note. When the
context requires, singular nouns and pronouns include the plural.
A default exists under this Note if(1) (a) Borrower or (b) any other person liable on any
part of this Note (an "Other Obligated Party") fails to timely pay or perform any obligation or
covenant in any written agreement between Lender and Borrower or such Other Obligated Party;
(2) any warranty, covenant, or representation in this Note or in any other written agreement
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street
Rev 9/06/2018
between Lender and Borrower or any Other Obligated Party is materially false when made; (3) a
receiver is appointed for Borrower, any Other Obligated Party, or any property on which a lien or
security interest is created as security (the "Collateral Security") for any part of this Note; (4) any
Collateral Security is assigned for the benefit of creditors; (5) a bankruptcy or insolvency
proceeding is commenced by Borrower or an Other Obligated Party; (6) (a) a bankruptcy or
insolvency proceeding is commenced against Borrower or an Other Obligated Party and (b) the
proceeding continues without dismissal for 90 days, the party agnst whom the proceeding is
commenced admits the material allegations of the petition against it, or an order for relief is
entered; (7) any of the following parties is dissolved, begins=to wind up its affairs, is authorized
to dissolve or wind up its affairs by its governing body or, persons, or.any event occurs or
condition exists that permits the dissolution or winding up of the affairs of-any of the following
parties: (i) Borrower, or (ii) an Other Obligated party; and (8) any Collateral Security is
materially impaired by loss, theft, damage, levy and execution, issuance of an official writ or
order of seizure, or destruction, unless it is promptly replaced withinsurance proceeds, collateral
security of like kind and quality or restored to its former ion.
The execution and delivery of this Note are required under the Contract.
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street
Rev 9/06/2018
If any provision of this Note conflicts with any provision of the Contract, the Deed of
Trust or any other document evidencing the same transaction between Lender and Borrower, the
provisions of the Contract will govern to the extent of the conflict.
This Note will be construed under the laws of the state of Texas without regard to
choice-of-law rules of any jurisdiction.
[SIGNATURE PAGES IMMEDIATELY FOLLOW]
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street
Rev 9/06/2018
HOUSING CHANNEL
Donna VanNess, President
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street
Rev 9/06/2018
EXHIBIT "F"
REIMBURSEMENT FORMS
HOUSING CHANNEL
3625 Eagle Nest Street
INVOICE
Developer: HOUSING CHANNEL
Address:
City, State, Zip:
Project: Hardy Street- Phase III
Tax ID Number
Phase Number:
Amount
This Invoice Cumulative to Date
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street Rev 9/06/2018
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EXHIBIT "G"
HOME PROJECT COMPLIANCE REPORT
HOUSING CHANNEL
3625 Eagle Nest Street
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street Rev 9/06/2018
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EXHIBIT "H"
DAVIS BACON REQUIREMENTS—FEDERAL LABOR STANDARDS PROVISIONS
HOUSING CHANNEL
3625 Eagle Nest Street
NA
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street Rev 9/06/2018
EXHIBIT "I"
SECTION 3 REPORTING FORMS
HOUSING CHANNEL
3625 Eagle Nest Street
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street Rev 9/06/2018
EXHIBIT ffIff
Section 3 Summary Report U.S.Department of Housing OMB Approval No: 2529-0043
Economic Opportunities for and Urban Development (exp.11/30/2010)
Low—and Very Low-Income Persons Office of Fair Housing
And Equal Opportunity HUD FieldOffioe:
Section back of page for Public Reporting Burden statement
1.Recipient Name&Address: (street,city,state,zip) 2.Federal Identification: (grant no.) 3. Total Amount of Award:
4.Contact Person 5.Phone: (Include area code)
6.Length of Grant: 7.Reporting Period:
8.Date Report Submitted: 9.Program Code: (Use separate sheet 10. Program Name:
for each program code)
Part I: Employment and Training **Columns B,C and F are manda ory fields. Include New Hires in E&F
A BC D E F
Number of Number of New %of Aggregate Number %of Total Staff Hours Number of Section 3
Job Category New Hires Hires that are of Staff Hours of New Hires for Section 3 Employees Trainees
Sec.3 Residents that are Sec.3 Residents and Trainees
Professionals
Technicians
Office/Clerical
Construction by Trade(List)
Trade
Trade
Trade
Trade
Trade
Other List
Total
Program Codes 3=Public/Indian Housing 4=Homeless Assistance 8=CDBG State Administered
1=Repble Subsidy A=Development, 5=HOME 9=Other CD Programs
2=Section 2021811 B=Operation 6=HOME State Administered 10=Other Housing Programs
C=Modernization 7=CDBG Entitlement
Page 1 of 2 form HUD 60002(6/2001)
Ref 24 CFR 135
Part II: Contracts Awarded
1. Construction Contracts:
A. Total dollar amount of all contracts awarded on the project $
B. Total dollar amount of contracts awarded to Section 3 businesses $
C. Percentage of the total dollar amount that was awarded to Section 3 businesses %
D. Total number of Section 3 businesses receiving contracts
2. Non-Construction Contracts:
A. Total dollar amount all non-construction contracts awarded on the project/activity $
B. Total dollar amount of non-construction contracts awarded to Section 3 businesses $
C. Percentage of the total dollar amount that was awarded to Section 3 businesses %
D. Total number of Section 3 businesses receiving non-construction contracts
Part III: Summary
Indicate the efforts made to direct the employment and other economic opportunities generated by HUD financial assistance for housing
and community development programs,to the greatest extent feasible,toward low-and very low-income persons,particularly those who
are recipients of government assistance for housing. (Check all that apply.)
Attempted to recruit low-income residents through: local advertising media,signs prominently displayed at the project site,
contracts with the community organizations and public or private agencies operating within the metropolitan area(or
nonmetropolitan county)in which the Section 3 covered program or project is located,or similar methods.
Participated in a HUD program or other program which promotes the training or employment of Section 3 residents.
Participated in a HUD program or other program which promotes the award of contracts to business concerns which meet the
definition of Section 3 business concerns.
Coordinated with Youthbuild Programs administered in the metropolitan area in which the Section 3 covered project is located.
Other;describe below.
Public reporting for this collection of information is estimated to average 2 hours per response,including the time for reviewing instructions,
searching existing data sources,gathering and maintaining the data needed,and completing and reviewing the collection of information.
This agency may not collect this information,and you are not required to complete this form,unless it displays a currently valid OMB
number.
Section 3 of the Housing and Urban Development Act of 1968,as amended, 12 U.S.C. 1701 u,mandates that the Department ensures that
employment and other economic opportunities generated by its housing and community development assistance programs are directed
toward low-and very-low income persons,particularly those who are recipients of government assistance housing. The regulations are
found at 24 CFR Part 135. The information will be used by the Department to monitor program recipients'compliance with Section 3,to
assess the results of the Department's efforts to meet the statutory objectives of Section 3,to prepare reports to Congress,and by
recipients as self-monitoring tool. The data is entered into a database and will be analyzed and distributed. The collection of information
involves recipients receiving Federal financial assistance for housing and community development programs covered by Section 3. The
information will be collected annually to assist HUD in meeting its reporting requirements under Section 808(e)(6)of the Fair Housing Act
and Section 916 of the HCDA of 1992. An assurance of confidentiality is not applicable to this form. The Privacy Act of 1974 and OMB
Circular A-108 are not applicable. The reporting requirements do not contain sensitive questions. Data is cumulative;personal identifying
information is not included.
Page 2 of 2 form HUD 60002(11/2010)
Ref 24 CFR 135
Form HUD-60002,Section 3 Summary Report,Economic Opportunities for Low-and Very Low-Income Persons.
Instructions: This form is to be used to report annual 8. Program Code: Enter the appropriate program code as listed at
accomplishments regarding employment and other economic the bottom of the page.
opportunities provided to low-and very low-income persons under 9. Program Name: Enter the name of HUD Program corresponding
Section 3 of the Housing and Urban Development Act of 1968. The with the"Program Code"in number 8.
Section 3 regulations apply to any public and Indian housing
programs that receive: (1)development assistance pursuant to Part I: Employment and Training Opportunities
Section 5 of the U.S.Housing Act of 1937;(2)operating assistance Column A: Contains various job categories. Professionals are
pursuant to Section 9 of the U.S.Housing Act of 1937;or(3) defined as people who have special knowledge of an occupation(i.e.
modernization grants pursuant to Section 14 of the U.S.Housing Act supervisors,architects,surveyors,planners,and computer
of 1937 and to recipients of housing and community development programmers). For construction positions,list each trade and provide
assistance in excess of$200,000 expended for: (1)housing data in columns B through F for each trade where persons were
rehabilitation(including reduction and abatement of lead-based paint employed. The category of"Other'includes occupations such as
hazards);(2)housing construction;or(3)other public construction service workers.
projects;and to contracts and subcontracts in excess of$100,000 Column B: (Mandatory Field) Enter the number of new hires for
awarded in connection with the Section-3-covered activity. each category of workers identified in Column A in connection with
Form HUD-60002 has three parts,which are to be completed for this award. New hire refers to a person who is not on the contractor's
all programs covered by Section 3. Part I relates to employment or recipient's payroll for employment at the time of selection for the
and training.The recipient has the option to determine numerical Section 3 covered award or at the time of receipt of Section 3 covered
employment/training goals either on the basis of the number of hours assistance.
worked by new hires(columns B,D,E and F). Part II of the form Column C: (Mandatory Field) Enter the number of Section 3 new
relates to contracting,and Part III summarizes recipients'efforts to hires for each category of workers identified in Column A in
comply with Section 3. connection with this award. Section 3 new hire refers to a Section 3
Recipients or contractors subject to Section 3 requirements must resident who is not on the contractor's or recipient's payroll for
maintain appropriate documentation to establish that HUD financial employment at the time of selection for the Section 3 covered award or
assistance for housing and community development programs were at the time of receipt of Section 3 covered assistance.
directed toward low-and very low-income persons.' A recipient of Column D: Enter the percentage of all the staff hours of new hires
Section 3 covered assistance shall submit one copy of this report to (Section 3 residents)in connection with this award.
HUD Headquarters,Office of Fair Housing and Equal Opportunity. Column E: Enter the percentage of the total staff hours worked for
Where the program providing assistance requires an annual Section 3 employees and trainees(including new hires)connected
performance report,this Section 3 report is to be submitted at the with this award. Include staff hours for part-time and full-time
same time the program performance report is submitted. Where an positions.
annual performance report is not required,this Section 3 report is to be Column F: (Mandatory Field) Enter the number of Section 3
submitted by January 10 and,if the project ends before December 31, residents that were trained in connection with this award.
within 10 days of project completion. Only Prime Recipients are Part II: Contract Opportunities
required to report to HUD. The report must include Block 1: Construction Contracts
accomplishments of all recipients and their Section 3 covered Item A: Enter the total dollar amount of all contracts awarded on the
contractors and subcontractors. project/program.
HUD Field Office: Enter the Field Office name. Item B: Enter the total dollar amount of contracts connected with this
1. Recipient: Enter the name and address of the recipient project/program that were awarded to Section 3 businesses.
submitting this report. Item C: Enter the percentage of the total dollar amount of contracts
2. Federal Identification: Enter the number that appears on the connected with this project/program awarded to Section 3 businesses.
award form(with dashes). The award may be a grant, Item D: Enter the number of Section 3 businesses receiving awards.
cooperative agreement or contract. Block 2: Non-Construction Contracts
3. Dollar Amount of Award: Enter the dollar amount,rounded to the Item A: Enter the total dollar amount of all contracts awarded on the
nearest dollar,received by the recipient. project/program.
4&5. Contact Person/Phone: Enter the name and telephone number Item B: Enter the total dollar amount of contracts connected with this
of the person with knowledge of the award and the recipient's project awarded to Section 3 businesses.
implementation of Section 3. Item C: Enter the percentage of the total dollar amount of contracts
6. Reporting Period: Indicate the time period(months and year) connected with this project/program awarded to Section 3 businesses.
this report covers. Item D: Enter the number of Section 3 businesses receiving awards.
7. Date Report Submitted: Enter the appropriate date. Part III: Summary of Efforts—Self-explanatory
Submit one(1)copy of this report to the HUD Headquarters Office of
Fair Housing and Equal Opportunity,at the same time the The Secretary may establish income ceilings higher or lower than 80 percent
performance report is submitted to the program office. The Section 3 of the median for the area on the basis of the Secretary's findings such that
report is submitted by January 10. Include only contracts executed variations are necessary because of prevailing levels of construction costs
during the period specified in item 8. PHAs/IHAs are to report all or unusually high-or low-income families. Very low-income persons mean
contracts/subcontracts. low-income families(including single persons)whose incomes do not
exceed 50 percent of the median family income area,as determined by the
The terms"low-income persons"and very low-income persons"have Secretary with adjustments or smaller and larger families,except that the
the same meanings given the terms in section 3(b)(2)of the United Secretary may establish income ceilings higher or lower than 50 percent of
States Housing Act of 1937. Low-income persons mean families the median for the area on the basis of the Secretary's findings that such
(including single persons)whose incomes do not exceed 80 percent of variations are necessary because of unusually high or low family incomes.
the median income for the area,as determined by the Secretary,with
adjustments for smaller and larger families,except that
Page i form HUD 60002(11/2010)
Ref 24 CFR 135
EXHIBIT "J"
STANDARDS OF COMPLETE DOCUMENTATION
HOUSING CHANNEL
3625 Eagle Nest Street
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street Rev 9/06/2018
FORTWORTH.
Standard of Documentation for Reimbursement of Development Costs
Cost Type Documentation Standard
Acquisition of Real Property • Notice to Seller (date must be on or before the date of options agreement
or sales contract and signed by the buyer and seller)
• Recorded Deed of Trust
• Purchase Agreement w/ Required HUD language
• Master Settlement Statement/HUD-1
• Appraisal or other document used to determine purchase price
• Proof of Payment (i.e., bank statement/cancelled check)
• Verification of Vacant Status (as applicable)
Pre-Development and Soft . Invoice should include:
Costs (Architect, Engineer, ■ date;
Landscape Design, Surveys, ■ company's letterhead;
Appraisals, Environmental, Legal ■ address for which service is provided;
Fees, Other Consultants, Etc.) ■ description of service(s) and item(s);
■ amount for itemized services; and
■ total amount
• Proof of Payment (i.e., bank statement or cancelled check)
• Fully executed contract/service agreements/letter agreements and
applicable amendments
■ Provide printout from www.sam.goyverifying
contractor/subcontractor is not listed on the debarred and
suspension list
• If only a portion is being paid with City funds, then show calculation and
documentation of how costs are allocated.
Neighborhood Services
FINAL as of 6/21/2017 Page 1
FORTWORTH.
Standard of Documentation for Reimbursement of Development Costs
Construction Costs Invoice should include:
(Contractors &Subcontractors) ■ date;
■ company's letterhead;
■ address for which service is provided;
■ description of service(s) and item(s);
■ amount for itemized services; and
■ total amount
• Proof of Payment (i.e., bank statement or cancelled check)
• Copy of applicable inspection report(s) conducted by NSD Inspector
• Copy of executed agreements
■ Provide printout from www.sam.govverifying
contractor/subcontractor is not listed on the debarred and
suspension list
• If only a portion is being paid with City funds, then show calculation and
documentation of how costs are allocated.
• For payment of final retainage for the prime contractor, provide lien
waivers for the prime and all subcontractors.
• List of subcontractors
Materials Purchased by Developer • Invoice should include:
(if applicable) ■ date;
■ company's letterhead;
■ address for which service is provided;
■ description of service(s) and item(s);
■ amount for itemized services; and
■ total amount
• Proof of Payment (i.e., bank statement or cancelled check)
• Verification of delivery
Developer Fee • Final Invoice Reflecting Total Development Cost
(if paid directly from HOME funds) • Proof of payment for any other entity/funding source contributing to
development costs
• Show calculation of agreed upon developer fee percentage
• Copies of final lien releases from contractor/subcontractor
• Complete Documentation income eligibility of buyers/renters (i.e., income
documents for eligible homebuyer/tenants, sales contract between
developer/homebuyer, HAP Deed of Trust with required affordability
period language, etc.)
• Lease documents
• Final inspections of completed units
Neighborhood Services
FINAL as of 6/21/2017 Page 2
EXHIBIT "K"
MBE REPORTING FORM
HOUSING CHANNEL
3625 Eagle Nest Street
CHDO SINGLE FAMILY CONTRACT
Hardy Street Infill Project
Housing Channel—3625 Eagle Nest Street Rev 9/06/2018
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M&C Review Page 1 of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA
COUNCIL ACTION: Approved on 6/26/2018
REFERENCE ** 19HARDY STREET
DATE: 6/26/2018 NO.: C-28737 LOG NAME: PROJECT_FUNDING
REALLOCATION
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize Reallocation of$540,000.00 of HOME Investment Partnerships Program Grant
Funds to Housing Channel from Phase II to Phase III of the Hardy Street Single Family
Infill Development in the Diamond Hill-Jarvis Neighborhood to Complete the Project
(COUNCIL DISTRICT 2)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager or his designee to substitute funding years in order to meet
commitment, disbursement and expenditure deadlines for grant funds from the United States
Department of Housing and Urban Development;
2. Authorize reallocation of$540,000.00 of HOME Investment Partnerships Program grant funds to
Housing Channel from Phase II to Phase III of the Hardy Street Single Family Infill Development
located in the Diamond Hill-Jarvis neighborhood in the form of subordinate loans to complete the
project;
3. Authorize the City Manager or his designee to execute contracts for each house with Housing
Channel for Phase III of the project for two year terms with the option for a one year extension; and
4. Authorize the City Manager or his designee to amend the contracts with Housing Channel if
necessary to achieve project goals provided that the amendments are within the scope of the project
and in compliance with City policies and applicable laws and regulations governing the use of federal
grant funds.
DISCUSSION:
On September 23, 2014, the City Council authorized the direct sale of 21 lots and the allocation of
$1,300,000.00 of HOME Investment Partnerships Program (HOME) grant funds from the U.S.
Department of Housing and Urban Development (HUD) to the Fort Worth Housing Finance
Corporation (FWHFC)for the Hardy Street Single Family Infill Development(M&C C-27008). On April
14, 2015, the City Council authorized the assignment of the HOME contracts and the Purchase and
Sale Agreement for the lots from FWHFC to Tarrant County Housing Partnership, Inc. (TCHP), a
Community Housing Development Organization (CHDO) (M&C C-27264). The purpose of the
assignment was to assist the City in meeting its CHDO commitment and spending goals with
HUD. On May 19, 2015, the City Council authorized an additional $310,000.00 of HOME funds to
TCHP to complete two more houses (M&C C-27295), and on August 4, 2015,the City Council
authorized an additional $643,603.00 of HOME funds to complete Phase I of the project(M&C G-
18521). On October 18, 2016, the City Council authorized an additional $600,000.00 of HOME funds
to construct six more houses for Phase II for a total project amount of$2,853,603.00 (M&C C-27967).
TCHP, now known as Housing Channel, was required by a change in the HOME regulations to obtain
a commercial loan for a portion of the construction costs of the Phase II houses. This resulted in a
remaining balance of$745,889.30 of HOME funds of which $205,000.00 is projected to be unused at
http://apps.cfwnet.org/council_packet/mc review.asp?ID=26004&councildate=6/26/2018 9/14/2018
M&C Review Page 2 of 2
the end of the project. (The unused $205,000.00 of HOME funds has been recommended to be
reallocated for use on other eligible projects in a separate Mayor and Council Communication).
Housing Channel has completed all 15 houses from Phase I and Phase II of the project. Ten houses
have been sold and the remaining five are under contract.
Staff recommends the reallocation of the HOME funds from Phase II to Phase III of the Hardy Street
Single Family Infill Development in order to complete the project. The completion of the project will
allow the City to meet its CHDO commitment, expenditure and spending goals with HUD. The HOME
funds may be used for any eligible costs related to the development in accordance with the HOME
regulations. The purpose of the project is to benefit low and moderate-income citizens by providing
them with quality, accessible, affordable housing. The Action Plan funding years may vary and be
substituted based on the principle of First In, First Out in order to expend oldest grant funds first.
The Hardy Street Single Family Infill Development is located in COUNCIL DISTRICT 2, Mapsco 48Z.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations, funds will be
available in the current operating budget, as appropriated, of the Grants Operating Federal Fund. The
Neighborhood Services Department is responsible verifying the availability of funds before an
expenditure is incurred. This is a reimbursement grant.
TO
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year Chartfield 2
FROM
epartment Account Project Program Activity Budget Reference# Amount
Fund D
ID I I ID I I Year Chartfield 2
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Aubrey Thagard (8187)
Additional Information Contact: Chad LaRoque (2661)
Alice Cruz (7322)
ATTACHMENTS
Housing Channel 1295.pdf
MapforAP15-16.pdf
http://apps.cfwnet.org/council_packet/mc review.asp?ID=26004&councildate=6/26/2018 9/14/2018
r7 31
-c)-8
CERTIFICATE OF INTERESTED PARTIES FORM 1295
101`1
Complete Nos.1-4 and 6 if there are interested parties. OFFICE USE ONLY
Complete Nos.1,2,3,5,and 6 if there are no interested parties. CERTIFICATION OF FILING
1 Name of business entity filing form,and the city,state and country of the business entity's place Certificate Number:
of business. 2018-363921
Housing Channel
Fort Worth,TX United States Date Filed:
2 Name of governmental entity or state agency that is a party to the contract for which the form is 06/05/2018
being filed.
City of Fort Worth Date Acknow! geti: , 1�%
g Provide the identification number used by the governmental entity or state agency to track or identify the contract and provide a
description of the services,goods,or other property to be provided under the contract.
HOME-Hardy Phase III
Development of affordable housing.
Nature of interest
4
Name of Interested Party City,State,Country(place of business) (check applicable)
Controlling Intermediary
5 Check only if there is NO Interested Party. ❑
X
6 UNSWORN DECLARATION t� /(/�
My name is— Y � * �i �I Kff and my date of birth is f
My address is "TZ7'rt1V S• r1a �(/t�Qrl.� u / _ f • IVB '�` lr J US
(street) (eiy) (state) (zip code) (country)
I declare under penalty of perjury/that the foregoing is true and correct. �^
Executed in County. State of on the 5 day of V .20 If
(month) (year)
��e-�qw
igna o rued agent -acting businest entity
(Declarant)
Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.5523